Another reason why vertical integration of steel producers and shipbuilders is highly unlikely is
A)The scale and continuous production of a steel plant would be huge and ill-matched to the needs of a shipbuilder.
B)They are such different businesses as to make management of both very difficult
C)Both these industries are often highly politically sensitive.
D)Both a and b above

Question

Quizplus · Accepted Answer

The scale and continuous production of a steel plant would be ill-matched to the needs of a shipbuilder, and managing such different businesses would be extremely difficult. Therefore, both reasons given in options A and B make it highly unlikely for vertical integration to occur. Option C, while potentially true, is not as significant a factor as the operational challenges outlined in options A and B.

Another Reason Why Vertical Integration of Steel Producers and Shipbuilders