What are horizontal- and vertical-boundaries of the firm, and how might each give rise to large corporations? Outline theories and provide examples to illustrate your arguments.

1.
What are horizontal- and vertical-boundaries of the firm, and how might each give rise to large corporations? Outline theories and provide examples to illustrate your arguments.
This essay should consider the link between Horizontal and Vertical boundaries and the size of firms.
What are Horizontal boundaries of the firms? – this needs to be clarified and defined.
What are Vertical boundaries of the firms? – this needs to be clarified and defined.
In particular, what aspects of Horizontal boundaries might give rise to larger than smaller firms? what aspects of Vertical boundaries might give rise to larger than smaller firms? Why do these ideas lead to the conclusion that bigger is better? What is likely to be the practical outcome of this in the business world? Are there any contradictions to this? Is small sometime better, if so why?

Details of the economic mechanisms underlying this link need to be considered, with some precision. Note that seemingly obvious (micro-) mechanisms can have big consequences! e.g. economies of scale mechanisms (horizontal) and transaction costs (vertical).

Examples of industries or scenarios where particular Horizontal or Vertical boundary arguments dominate will help illustrate economic arguments
and bring to life the reality of big business.


 

The post What are horizontal- and vertical-boundaries of the firm, and how might each give rise to large corporations? Outline theories and provide examples to illustrate your arguments. appeared first on Ink Essays.

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