Â The difference between vertical and horizontal integrations and the effect of the anti-trust policy on mergers. Introduction: Vertical integration: A vertical integration is one in which the acquirement of firms with the same production process within the same industry is done. Horizontal integration: A horizontal integration is one in which the acquirement of firms with the same level of value chain in an industry is done. Anti-trust policy: Anti-trust laws are statues of the U.S. to ensure the prevention of consumer exploitation by implementing healthy competition in an open-market economy.

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Chapter 20, Problem 4DQ

Summary Introduction

To explain:Â The difference between vertical and horizontal integrations and the effect of the anti-trust policy on mergers.

Introduction:

Vertical integration:

A vertical integration is one in which the acquirement of firms with the same production process within the same industry is done.

Horizontal integration:

A horizontal integration is one in which the acquirement of firms with the same level of value chain in an industry is done.

Anti-trust policy:

Anti-trust laws are statues of the U.S. to ensure the prevention of consumer exploitation by implementing healthy competition in an open-market economy.

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