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Single Answer MCQ
Q-00045504

What is the term for when MNCs acquire local companies to expand their production?

1

Market Penetration

2

Vertical Integration

3

Horizontal Integration

4

Foreign Direct Investment

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Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

C. Horizontal Integration

Solution:

The correct term is 'Horizontal Integration', which involves acquiring or merging with local companies in the same industry to increase market share. Vertical Integration refers to controlling various stages of production.

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