When U.S. Steel, a steel producer, bought control of iron ore companies at the beginning of the 20th century, the company was initiating
A) a horizontal merger.
B) a vertical merger.
C) a cartel.
D) an expropriation.

Question

Quizplus · Accepted Answer

U.S. Steel's purchase of control of iron ore companies is an example of a vertical merger, as it involves the acquisition of companies that are part of the same supply chain. In this case, U.S. Steel was acquiring iron ore producers in order to secure a more reliable and cost-efficient supply of raw materials for its steel production.

When US Steel, a Steel Producer, Bought Control of Iron Ore