Linkages , Tradinf And Marketing Patterns

Question 1

What are good about TNCs?

Answer 1

Ability to expand and gain more control of industry and markets.

Question 2

Name 2 types of integration.

Answer 2

Vertical

Horizontal

Question 3

What is vertical integration ?

Answer 3

Supply chain of a company owned entirely by that company from raw materials to finished product.
Gives cont over supplies / stocks / reduces prices.

Question 4

Example of vertical integration

Answer 4

BP.
Oil and gas industry.
It has exploded over 40 oil and gas filed worldwide.

Question 5

What is horizontal integration?

Answer 5

Company diversifies operations by expansion , merger or takeover to give broader capability.
Can be complementary / competitive to existing businesses.

Question 6

Example of horizontal integration.

Answer 6

Kraft food takeover of Cadbury in 2010.

More diverse base in grocery / confectionary market.