What are the two main types of integration methods in creating a common market?
Understand the Problem
The question is asking for an explanation of the two primary types of integration methods used in establishing a common market. This involves understanding economic and trade integration strategies that countries may employ.
Answer
Horizontal integration and vertical integration.
Horizontal integration and vertical integration are the two main types.
Answer for screen readers
Horizontal integration and vertical integration are the two main types.
More Information
Horizontal integration involves expanding operations across different markets or acquiring competitors, enhancing market share. Vertical integration involves taking control over multiple stages of the production or supply chain to streamline operations and reduce costs.
Tips
A common mistake could be confusing horizontal and vertical integration, as horizontal integration refers to expanding across markets while vertical is about consolidating within a supply chain.
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