Key Terms

Take Over:
This is where a company takes over another company because the company is expanding or one company has went bankrupt and another company is buying in to it.

Merger:
This is where two company's combine into one larger company. This is used so that the company can make more money and have more power. e.g. Loyds TSB. Loyds and TSB were two separate banks at one point and then because they wanted to expand and become a large company they combined into one larger company. This doesn't always work out in the end as now in 2013 Loyds TSB are no longer one large bank as TSB has started to become its own independent bank now.

Vertical Integration:
Vertical Integration is where a company expands its business into areas, that are at different points of the same production path. This is how company's become larger company's be adding or buying more smaller company to work for them that are in the same line of business.

Horizontal Integration:
When a company expands its business into different products that are similar to current lines. This is slightly similar to Vertical Integration as this is also where company's can buy into other company with a similar line of business.

Globalization: 
This is the process by which the world is becoming increasingly interconnected as a result of massively increasing trade and cultural exchange.