USA HISTORY

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WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900

IMMIGRATION IN INDUSTRIAL AMERICA

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The statement “buying out competitors that sell a similar item in order to control the prices of a good” describes ____
A
Vertical Integration
B
Horizontal Integration
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -If a company acquires or merges with another company and both firms are in a very similar industry, it is most likely an example of horizontal integration. Specific examples include: JetBlue’s 2022 merger with Spirit Airlines5.

Detailed explanation-2: -Horizontal integration is an expansion strategy adopted by a company that involves the acquisition of another company in the same business line. Vertical integration refers to an expansion strategy where one company takes control over one or more stages in the production or distribution of a product.

Detailed explanation-3: -Horizontal integration is a competitive strategy where business entities operating at the value chain level and within the same industry merge to increase the production of goods and services. The overall gain from a horizontal integration is an increase in the market power and minimal loss for being non-integrated.

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