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- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
What is the economic term for when one textile manufacturer acquires another company in the same industry?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
Horizontal integration refers to the process where a company acquires or merges with another company operating at the same level in the industry, such as one textile manufacturer taking over another. This differs from vertical integration, which involves acquiring companies at different stages of production, and diversification, which involves entering new markets or industries.
More Basic of Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes deflation?
- 2.Under what condition can two nations benefit from engaging in international trade?
- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?