All of the following are benefits of horizontal integration except:
A)Reduced risk of corning into conflict with the FTC
B)Increased product differentiation
C)Reduced industry rivalry
D)Increased bargaining power over suppliers
E)Reduced cost structure

Question

Quizplus · Accepted Answer

Horizontal integration involves acquiring or merging with companies in the same industry and can lead to reduced industry rivalry, increased bargaining power over suppliers, increased product differentiation, and reduced cost structure. However, it does not necessarily reduce the risk of coming into conflict with regulatory agencies such as the Federal Trade Commission (FTC). In fact, horizontal integration can sometimes raise antitrust concerns and attract scrutiny from regulatory agencies.

All of the Following Are Benefits of Horizontal Integration Except