USA HISTORY

Detailed explanation-1: -Rockefeller often bought other oil companies to eliminate competition. This is a process known as horizontal integration. Carnegie also created a vertical combination, an idea first implemented by Gustavus Swift.

Detailed explanation-2: -By 1880, Standard Oil owned or controlled 90 percent of the U.S. oil refining business, making it the first great industrial monopoly in the world. But in achieving this position, Standard violated its Ohio charter, which prohibited the company from doing business outside the state.

Detailed explanation-3: -Explanation of Horizontal Integration If a company owns every bit of a production process then it is known as a horizontal monopoly. Although this is much more difficult to achieve than a vertical monopoly. Horizontal Integration was made famous by John D. Rockefeller’s Standard Oil company.

Detailed explanation-4: -Standard Oil gained a monopoly in the oil industry by buying rival refineries and developing companies for distributing and marketing its products around the globe. In 1882, these various companies were combined into the Standard Oil Trust, which would control some 90 percent of the nation’s refineries and pipelines.