What is the difference between a horizontal and vertical merger?
What will be an ideal response?
In a horizontal merger, the acquisition of a competitor could increase market concentration and increase the likelihood of collusion. The elimination of head-to-head competition between two leading firms may result in unilateral anticompetitive effects. A recent example of this involved Staples, Inc., a superstore retailer of office supplies. Staples attempted to acquire Office Depot, another giant retailer in the same industry and clearly a competitor. In many areas of the country, the merger would have reduced the number of superstore competitors, often leaving Staples as the only superstore in the area. The F.T.C. subsequently blocked the merger and avoiding potentially harmful effects such as increased costs to profits, though Staples would have benefited highly from the merger. Vertical mergers involve firms in a buyer-seller relationship. Put another way, a vertical merger is a merger between two firms, one of which is a supplier or distributor for the other and this can harm competition by making it difficult for competitors to gain access to an important component product or to an important channel of distribution. This is sometimes referred to as a bottleneck.
You might also like to view...
In a city, children are playing on the trunk of a fallen tree on the landholder's property. One slips,
falls, and suffers an injury. The landholder will try to escape liability by saying that the child's injuries arose due to A) comparative negligence B) an artificial condition C) an Act of God D) a natural condition
Which of the following should never be used for transmission of confidential information?
a. Internet cafés b. Wireless networks in airports c. Encrypted communications systems d. Internet cafés and wireless networks in airports
Matchthe most appropriate term to the definition.
A. Method by which very specificinterpretationsof U.S.constitutionalamendments areimposedon the states by the U.S. Supreme Court B. Bond of $50,000for a first-time offense of driving under the influence in which no accident or injuriesoccurred C. Necessary unlessthe defendant is likely to flee or evidence is likely to be lost D. More than mere suspicion E. Constitutionalprohibitionthat does not apply if the case ends in a mistrial F. Type of circumstances when warrantless searchesand seizures cannot be conducted G. Any point whenthe life or libertyof the defendant is injeopardy H. Reasonfor the constitutional right of a defendantnot to testify and not to have that failureto testifyheld againsthim/her I. That which isfundamentally fair in the Americansystem of justice J. Protectsthe rights to counsel and rights against forced self-incrimination
Answers to interrogatories should?
A. ?put the client in the best possible light. B. ?include an objection to each question. C. ?never include complete documents. D. ?not require the involvement of the client.