Which Type of Diversification Involves Moving into Businesses That Are

question 67

Multiple Choice

Which type of diversification involves moving into businesses that are related to the company's original core business?

• A)concentric
• B)conglomerate
• C)vertical
• D)functional
• E)horizontal

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Definitions:

International Trade

The exchange of goods and services between countries, allowing for specialization and economies of scale.

Specialization

In economics, it refers to the process by which individuals, businesses, or countries focus on producing a narrow range of goods or services to gain greater efficiencies and improve competitive advantage.

Self-Sufficiency

The condition of being able to satisfy all of one's needs without external assistance.

NAFTA

The North American Free Trade Agreement, a treaty entered into by the United States, Canada, and Mexico; effective in 1994 to eliminate most tariffs on trade between these nations.