QuestionAugust 8, 2025

A meat packing plant buys a smaller meat packing plant and lowers its prices to effectively run a third plant out of business. It then strikes a deal with the railroad to transport its meat at a lower price and gains control of the meat market What aspect of industrialization does this represent? A trade Horizontal integration A holding company Vertical integration

A meat packing plant buys a smaller meat packing plant and lowers its prices to effectively run a third plant out of business. It then strikes a deal with the railroad to transport its meat at a lower price and gains control of the meat market What aspect of industrialization does this represent? A trade Horizontal integration A holding company Vertical integration
A meat packing plant buys a smaller meat packing plant and lowers its prices to effectively run a third plant out of business. It then strikes a deal with the railroad to transport its meat at a lower price and gains control of the meat market What aspect of industrialization does this represent? A trade Horizontal integration A holding company Vertical integration

Solution
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Answer

Horizontal integration Explanation 1. Identify the Strategy The scenario describes a company acquiring another and lowering prices to eliminate competition, which is characteristic of **Horizontal Integration**. 2. Analyze Additional Actions The deal with the railroad for lower transportation costs represents gaining control over different stages of production, indicative of **Vertical Integration**.

Explanation

1. Identify the Strategy<br /> The scenario describes a company acquiring another and lowering prices to eliminate competition, which is characteristic of **Horizontal Integration**.<br /><br />2. Analyze Additional Actions<br /> The deal with the railroad for lower transportation costs represents gaining control over different stages of production, indicative of **Vertical Integration**.
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