Horizontal integration would occur if General Motors sets up a subsidiary in Mexico to produce automobiles identical to those that it produces in the United States.

Question

Quizplus · Accepted Answer

Horizontal integration occurs when a company expands horizontally by setting up a subsidiary or acquiring another company in the same industry and producing identical or similar products. In this case, General Motors would set up a subsidiary in Mexico to produce automobiles identical to those it produces in the United States, which is an example of horizontal integration.

Horizontal Integration Would Occur If General Motors Sets Up a Subsidiary