Author Question: Which of the following is true of vertical integration? a. It leads to the formation of larger ... (Read 27 times)

D2AR0N · **on:** Jun 30, 2018

Which of the following is true of vertical integration?
a. It leads to the formation of larger firms from smaller ones.
b. It occurs when a firm adds more layers of management.
c. It occurs when firms try to buy up their competitors and corner the market.
d. It has no effect on the internal organization of a firm; it only affects outside markets.
e. It occurs when a firm buys another firm in a completely unrelated market.

Question 2

The purchasing power parity theory is a good predictor of
a. all of the following
b. the long-run tendencies between changes in the price level and the exchange rate of two countries
c. interest rate differentials between two countries when there are strong barriers preventing trade between the two countries
d. how intervention in exchange markets by central banks influences prices in various countries
e. the day-to-day relationship between changes in the price level and the exchange rate of two countries