Pursuing related diversification is to obtain market power

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1. Do you believe that in the next three years large firms will be more or less diversified than they are today? Why? Will the trends regarding diversification be identical in Europe, the United States, and Japan? Explain.

2. One rationale for pursuing related diversification is to obtain market power. In the United States, however, too much market power may result in a challenge by the US Justice Department (because it may be perceived as anticompetitive). What situations related diversification might be considered unfair competition?

Reference no: EM132180211

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