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merger (G3)<br />An amalgamation of two or more firms into a new firm. A vertical merger occurs when firms in industries at different stages of bringing a good to the final consumer i.e. extractive, ma nufacturing or distribu tion, join together. If the firms are in the same industry, there is a horizontal merger. A CONGLOMERATE MERGER is an amalgamation of firms with dissimila r activities. Mergers often come in waves, particularly in times of general economic depression as a way of reducing costs, e.g. in the USA in 19031 and in the UK in the 1920s. As a high proportion of conglomerate mergers fail to make efficiency gains in RESEARCH AND DEVELOPMENT, production or marketing, it is a rgued that they are without
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<strong>E-distribution list</strong> – The Missouri Department of Higher Education' s electronic news service. To sign up for this service, visit
http://www.dhe.mo.gov/mdhedigest/signup.shtml.
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