The vertical merger expand the company upwards and down, the horizontal from side to side and the conglomerate moves off and does neither. The business of corporate mergers and acquisitions is an exciting and profitable one. Today giant mergers and acquisitions range in the tens of billions of dollars. Some mergers are hostile takeovers as we discussed earlier. In an LBO one company buys out the outstanding stock of another.
Some mergers are mutual mergers and corporate spin offs.
Either way, there is alot of money at stake. Some corporations become so large that they do business in many countries. These are known as multinationals, or MNC's. A multinational corporation is a very large firm with a head office in one country and several branches operating overseas. Advantages of Multinationals Investment by multinationals creates jobs for the host country.