7.7 Growth and Survival of firms Flashcards
1
Q
Horizontal integration
A
where a firm grows through a merger or acquisition of another firm in the same sector of an industry
2
Q
Cartel
A
a formal agreement between firms to limit competition by limiting output or fixing prices
3
Q
Diversification
A
where a firm grows through the production or sale of a wide range of different products
4
Q
Vertical integration
A
where a firm grows by producing backwards or forwards in its supply chain
5
Q
Horizontal integration
A
where a firm merge or acquires another in the same line of business
