, vertical integration involves a company owning and controlling multiple stages of the production process, from raw materials to the finished product. Horizontal integration, on the other hand, involves a company acquiring or merging with other companies operating in the same industry or at the same level of the production process.
Both practices contributed to the growth of monopolies in the early 1920s by consolidating power and eliminating competition. Vertical integration allowed companies to control every aspect of production, reduce costs, and gain a competitive advantage by controlling the supply chain. Horizontal integration allowed companies to merge with or acquire competitors, thereby reducing competition and increasing their market share. The combination of these practices enabled companies to dominate entire industries, leading to the formation of monopolies.
Compare the practices of vertical and horizontal integration in business. Explain how they contributed to the growth of monopolies in the early 1920s. century
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