1. Chapter 8.2 notes

2. Growth Through Mergers
merger – combination of two or more businesses to form a single firm; one firm gives up identity
Reasons for merging – to grow faster; become more efficient; acquire or deliver a better product; eliminate a rival; or change its image.

3. Types of mergers
horizontal – when two or more firms that produce the same kind of product join forces (ex: banks)
vertical – firms involved in different steps of manufacturing or marketing join together. (ex: a car company merging w/ a tire co.)
conglomerates – a firm that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sales. Purpose: to diversify

4. Multinational
a corp. that has manufacturing or service operations in a number of different countries. The corp. is subject to the laws and taxes of the country each operation is located in.
Example???