Custom Search

Mergers

Firms can grow larger by

1.             internal growth

2.             mergers

3.             take-overs

Reasons for mergers

1.             ec of scale

2.             market domination

3.             stability

4.             diversification

5.             asset striping-taken over coz land+capital worth more than co.

Small firms still exist coz

1.             limited economies of scale

2.             being own boss

3.             immobility in factor markets-labour dont want to move

4.             goodwill-personal care

5.             banding together to bulkbuy

6.             specialists

7.             subcontracting to larger

8.             monopoly can favour existence of small firms

 

Click here to see more economics,politics and school papers from me