Question

QUESTION 8

1. Firms engage in horizontal integration

	a.	to ensure the quality of goods that reach the consumer.
	b.	to gain more control of raw materials that will assist their production.
	c.	to defend or increase their market share.
	d.	to limit government scrutiny of their activities.

QUESTION 11

1. Which of the following is not a part of the WTO’s stance on trade?
   
   
   
   

	a.	Any trade barrier that reduces greenhouse-gas emissions is permissible.
	b.	Tariffs that are implemented to conserve natural resources must not be used merely to shut out foreign goods.
	c.	Any tax on imports must not exceed that on import competing products.
	d.	Freer import policy for the cleanest foreign country must be matched by freedom of imports for polluter countries.

  

QUESTION 12

1. The WTO permits a state to impose Countervailing Duties (CVDs)

	a.	if another state provides trade-distorting subsidies that produce or threaten material injury to its domestic producers.
	b.	if another state provides trade-distorting subsidies that produce or threaten serious injury to its domestic producers.
	c.	if foreign goods are dumped, and the dumping causes or threatens material injury to its domestic producers.
	d.	if foreign goods are dumped, and the dumping causes or threatens serious injury to its domestic producers.

Answer 1

Answer 8- (C) Firms engage in horizontal integration to defend or increase their market share.

Horizontal integration means when one company increases the production of its goods and services at equal level in the supply chain. It can be done by different ways like company may merge with other, go for expansion or acquisition. It gives many benefits to the company like increase in differentiated products , expansion of market or entry into new market. It provides with the capability to defend or increase their market share.

A) No , quality of goods is not the reason for horizontal integration because main reason for integration is expansion of business in same level of product , not to increase the quality.

B)No, it's aim is not to gain control on raw material specifically but to expand the business. It provides them with economies of scale benefit.

D) No, it is not done to limit government scrutiny on their activities. Horizontal integration provide no benefit with government control.