15 Questions
What type of integration involves a company owning the entire supply chain from raw materials to finished products?
Vertical integration
Which transnational corporation exemplifies vertical integration by owning shipping fleets, refineries, pipelines, and rights to oil production in 40 countries?
BP
What is the primary goal of horizontal integration in companies?
Diversification
What is the main outcome of vertical integration for a company?
Cost reduction and increased control
In which type of integration does a company merge with another for complementary or competitive reasons?
Horizontal integration
What is the main objective of transnational corporations (TNCs) through integration?
Reducing competition and monopolizing the market
How does vertical integration benefit a company in terms of supply chain management?
Enhancing control and reducing costs
What distinguishes horizontal integration from vertical integration in corporations?
Vertical integration involves merging with or taking over other companies for complementary reasons
Why do companies engage in horizontal integration according to the text?
To dominate the market by merging with competitors
What is a key aspect of BP's vertical integration as mentioned in the text?
Owning shipping fleets, refineries, pipelines, and oil production rights
What is the primary method through which transnational corporations (TNCs) expand their industry?
Vertical and horizontal integration
How does vertical integration benefit a company in terms of costs and control?
Reduces costs and increases control
What is the purpose of horizontal integration in a company's strategy?
To diversify operations
Which type of integration involves diversifying by merging with or taking over another company?
Horizontal integration
What distinguishes vertical integration from horizontal integration in corporations?
Control over the supply chain
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