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Corporate Mergers
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Mergers The joining together of two or more companies to form a single company.
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Horizontal Merger two companies that both make the same product and join together. Ex: Sprint and Nextel Reasons for horizontal mergers: 1.Increase customer base 2.Shared technology 3.Cut costs
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Antitrust laws Sometimes the government will stop horizontal mergers because it might create a monopoly. Sherman Antitrust Act (1890) the first law that banned mergers and monopolies that limit trade across states. It gave the government the power to stop cartels and monopolies.
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Vertical Merger a joining of two or more firms that are involved in different stage of producing the same good or service. Ex: A furniture manufacturer buys a lumber mill Vertical mergers cut costs.
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Conglomerate a combination merging two or more totally unrelated businesses Conglomerates are made to increase profits.
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Name the Conglomerate This company produces: 1.Grand pianos 2.Jet skis 3.Stereo equipment 4.Motorcycles
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YAMAHA
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Name the Conglomerate This company produces: 1.Swimming pool plaster 2.Air filters 3.Staplers 4.Post It notes
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3M
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Name the Conglomerate This company produces: 1.Men’s razors 2.Laundry detergent 3.Batteries 4.Diapers
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Proctor & Gamble
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Vocabulary words Zoning Laws: law in a city that designates separate areas for residency and for business Multinational corporations (MNCs) : a large corporation that produces and sells its goods and services throughout the world. Cooperative: business organization owned and operated by a group of individuals for their shared benefit. ex: an apartment complex., health care service, agricultural co-op
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What do you look for in a job? 1. working conditions 2. wage 3. intrinsic rewards 4. location 5. skills 6. market trends
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Why do Alaskan crab fishermen do what they do? What a person wants in a job: wage intrinsic rewards working conditions location skills market trends What a crab fisherman wants in a job: 1. 2. 3. 4. 5. 6.
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