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6 Cards in this Set
- Front
- Back
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Def of horizontal integration |
this is the merger of two firms at the same stage of production producing the same product |
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Def of vertical integration |
Occurs when a firm merges with another firm involved eight the production of the same product but at a different stage of production |
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What’s vertical integration backwards |
This happens when a firm merged with a firm that is the source of supply |
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what is vertical integration forward |
This happens when a firm merges with, or take over, a market outlet |
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What is conglomerate integration |
This happens when the merger of two firms making different products |
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Adv of small firms |
1) the small size of the market. Demand for example luxury rims, may be small as it may be individually designed 2) preference of consumers. For some personal services, such as hairdressing, consumers prefer small firms 3) owners preference. The owner of a firm may not want to grow 4) flexibility. Small firms may be able to respond more quickly and adjust to changes in the market conditions 5) government subsidies. Governments provide financial help and advice to small firms |
