Horizontal and Vertical Integration

John D. Rockefeller practiced horizontal integration by buying

• wildcatters

• oil refining business

• steel businesses

• pipelines and tankers

What is owning all the businesses in a particular field?

• Vertical Integration

• Horizontal Integration

• Trust

• Antitrust

Trusts sought to increase their profits by eliminating

• competition

• monopolies

• rebates

• philanthropy

Owning every step in the manufacturing process is

• trust

• monopoly

• vertical integration

• horizontal integration

Free enterprise is

• free government help for business

• giving away free samples to win new customers

• business that is free from government involvement

• freedom from monopolies

Entrepreneurs are people who

• give money to charity

• set up new businesses

• believe in Social Darwinism

• oppose trusts and monopolies

Corporations sold stock to

• raise money for expansion

• advertise their products

• achieve vertical integration

• compete in the NY Stock Exchange

HORIZONTAL integration occurs when...

• firms in the same industry and at the same stage of the production process combine to form a larger business.

• when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.

• Involves take over or merger with another firm in an unrelated industry.

Vertical integration occurs when...

• firms in the same industry and at the same stage of the production process combine to form a larger business.

• when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.

• Involves take over or merger with another firm in an unrelated industry.

An economic practice where the government does NOT try to control the economy.

• Gospel of Wealth

• laissez faire

• Social Darwinism

• horizontal integration