1) Market integration refers to: a) The increase of taxes in a country b) How easily markets trade with each other c) The closing of businesses d) Government ownership of companies 2) When prices of goods in different places move similarly over time, markets are: a) Isolated b) controlled c) integrated d) privatized 3) Buying a competitor at the same market level is called: a) Backward integration b) Forward integration c) Horizontal integration d) Conglomeration 4) Facebook buying Instagram is an example of: a) Conglomeration b) Forward integration c) Horizontal integration d) Backward integration 5) Which statement best explains market integration? a) Markets operate independently from each other. b) Markets are connected and influence one another. c) Only local businesses benefit. d) Competition is completely removed. 6) When a company owns different unrelated businesses, it is called: a) Horizontal integration b) Conglomeration c) Forward integration d) Backward integration 7) A company buying its supplier is an example of: a) Backward vertical integration b) Forward integration c) Horizontal integration d) Conglomeration 8) Balanced vertical integration means: a) Controlling only suppliers b) Controlling only retailers c) Controlling both suppliers and retailers d) Buying competitors only 9) One effect of horizontal integration is: a) Increased competition b) Reduced market share c) Higher economies of scale d) More trade barriers 10) If a company buys a competitor to gain larger market share and reduce competition, it is aiming for: a) Supply security b) Product differentiation c) Market power through horizontal integration d) Government regulation

MODULE 6

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