For a given country, which conditions will favor the formation of conglomerates?

Question

Quizplus · Accepted Answer

Limited financial markets and difficulty accessing international capital markets can make it difficult for smaller companies to raise capital on their own. Poor investor protection can also discourage investors from investing in smaller companies. As a result, conglomerates may form as a way for smaller companies to pool their resources and gain access to the necessary capital to grow and expand.

For a Given Country, Which Conditions Will Favor the Formation