If General Motors were to purchase XYZ Auto Headlight Company, this would be an example of a horizontal merger.

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This would be an example of a vertical merger because it involves a company at one stage of production (General Motors, an automobile manufacturer) acquiring a company that supplies one of the inputs to the production process (XYZ Auto Headlight Company, a supplier of auto headlights).

If General Motors Were to Purchase XYZ Auto Headlight Company