When a multinational corporation controls the raw material used in the production of its final good through a vertical integration,which of the following is most likely to happen?

Question

Quizplus · Accepted Answer

By controlling the raw materials through vertical integration, the multinational corporation can ensure an uninterrupted supply of the raw material at a lower cost. This can lead to lower production costs and increased profits for the company. Lower production costs do not necessarily mean lower prices for consumers, as pricing decisions are influenced by a variety of factors such as market competition, demand, and production costs. The MNC may face anti-trust charges if it engages in anti-competitive practices, but vertical integration itself is not necessarily a violation of anti-trust laws.

When a Multinational Corporation Controls the Raw Material Used in the Production