contestada

The government may be more likely to allow a corporation to form a conglomerate than allow it to horizontally merge with another country why?

Respuesta :

Answer:

The government is more likey to do this because while a corporate conglomerate can result in even more competition, since the corporation would enter several markets with subsidiaries, becoming a direct competitor of the firms that are already in said markets, a horizontal merger is likely to decrease competition because it leads to a concentration of market power in a particular sector for the horizontally merged firm.