Th3.1: Horizontal Integration Disadvantages Flashcards

1
Q

What is horizontal integration?

A

where firms in the same industry at the same stage of production integrate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the one disadvantage of horizontal integration?

A

it will increase risk for the business as if that particular market fails they have nothing to fall back on and will have invested a lot of money into that area - eggs all in one basket vibes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly