Conglomerates, Multinationals, & Mergers

Notes by Israel

Conglomerates: Is a firm that has more or 4 businesses, each making a different product. Each of does business isn’t responsible for the majority of the firm’s sales.

Ex: sonny

Multinational: it’s a corporation that has manufacturing or service operation in more than one location.

Ex: mc Donald


Horizontal merge: combination of two or more firms producing the same kind of product.

Vertical merge: combination of firms involved in different stages of manufacture or marketing.

Collusion: agreement, usually illegal, among producers to fix prices, limit output, or divide markets.