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CAIE A-Level Economics A2 7.7.3 External Growth and Integration Questions

Practise classifying horizontal, vertical and lateral integration and evaluating merger benefits, costs and market effects in A2 questions.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Classify horizontal, vertical and lateral integration and evaluate the benefits and risks of mergers and takeovers.

CAIE A-Level Economics A2 7.7.3 External Growth and Integration Questions question 1

[Maximum number: 1]

A major UK chemical firm was bought by its rival, a Dutch chemical firm.
What definitely occurred when the Dutch firm bought the UK firm?

A

a partnership

B

economies of scale

C

horizontal integration

D

increased profits

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