Which pair of terms describes strategies to control production or eliminate competitors—vertical integration and horizontal expansion?

• A. Horizontal Expansion / Vertical Integration
• B. Vertical Integration / Horizontal Expansion
• C. Vertical Expansion / Horizontal Integration
• D. Production Consolidation / Market Domination

Answer: (B)

In this topic, firms sought to control both how things are made and how they compete in the market. Vertical integration means owning and controlling several steps of the production process—from raw materials to finished goods and distribution—so a company can set costs, secure supplies, and streamline operations. Horizontal expansion refers to growing by extending into more markets or by merging with or absorbing competitors, which reduces rivals and increases market power. Together, these two strategies show how a company can tighten control over its production while also suppressing competition to dominate the field. The pairing of vertical integration with horizontal expansion captures this dual approach to production control and competitive elimination. Other options use less standard terms or mix concepts that don’t align as clearly with these strategies, such as relying on nonstandard phrasing or vague notions like production consolidation and market domination.