Transnational Corporations 2 Quiz
15 Questions
4 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What type of integration involves a company owning the entire supply chain from raw materials to finished products?

  • Horizontal integration
  • Vertical integration (correct)
  • Lateral integration
  • External integration
  • Which transnational corporation exemplifies vertical integration by owning shipping fleets, refineries, pipelines, and rights to oil production in 40 countries?

  • BP (correct)
  • Shell
  • ExxonMobil
  • Chevron
  • What is the primary goal of horizontal integration in companies?

  • Market expansion
  • Control over the supply chain
  • Cost reduction
  • Diversification (correct)
  • What is the main outcome of vertical integration for a company?

    <p>Cost reduction and increased control</p> Signup and view all the answers

    In which type of integration does a company merge with another for complementary or competitive reasons?

    <p>Horizontal integration</p> Signup and view all the answers

    What is the main objective of transnational corporations (TNCs) through integration?

    <p>Reducing competition and monopolizing the market</p> Signup and view all the answers

    How does vertical integration benefit a company in terms of supply chain management?

    <p>Enhancing control and reducing costs</p> Signup and view all the answers

    What distinguishes horizontal integration from vertical integration in corporations?

    <p>Vertical integration involves merging with or taking over other companies for complementary reasons</p> Signup and view all the answers

    Why do companies engage in horizontal integration according to the text?

    <p>To dominate the market by merging with competitors</p> Signup and view all the answers

    What is a key aspect of BP's vertical integration as mentioned in the text?

    <p>Owning shipping fleets, refineries, pipelines, and oil production rights</p> Signup and view all the answers

    What is the primary method through which transnational corporations (TNCs) expand their industry?

    <p>Vertical and horizontal integration</p> Signup and view all the answers

    How does vertical integration benefit a company in terms of costs and control?

    <p>Reduces costs and increases control</p> Signup and view all the answers

    What is the purpose of horizontal integration in a company's strategy?

    <p>To diversify operations</p> Signup and view all the answers

    Which type of integration involves diversifying by merging with or taking over another company?

    <p>Horizontal integration</p> Signup and view all the answers

    What distinguishes vertical integration from horizontal integration in corporations?

    <p>Control over the supply chain</p> Signup and view all the answers

    More Like This

    Transnational Corporations
    5 questions

    Transnational Corporations

    EntrancingRhodonite3625 avatar
    EntrancingRhodonite3625
    Transnational Corporations Quiz
    10 questions
    Market Integration Overview
    42 questions
    Use Quizgecko on...
    Browser
    Browser