Which of the following mergers is an example of vertical integration?
A) Bethlehem Steel purchases U.S. Steel.
B) IBM purchases a California computer chip company.
C) AT&T purchases MCI.
D) GM purchases Ford.

Question

Quizplus · Accepted Answer

Vertical integration refers to the merger of companies at different stages of production in the same industry. In this case, IBM purchasing a California computer chip company would be an example of vertical integration because it would allow IBM to expand its production capabilities to include the manufacturing of computer chips, which are a key component of its products. The other options do not involve companies at different stages of production in the same industry.

Which of the Following Mergers Is an Example of Vertical