Which of the following scenarios best illustrates horizontal integration?
A. Regal Autos Inc. enters into a licensing contract with a distributor in a new international market.
B. Regal Autos Inc. acquires a component parts manufacturer who previously supplied to Regal Autos' competitor.
C. Regal Autos Inc. sets up its own distribution channel and retail stores.
D. Regal Autos Inc. joins with Marcus Motors Inc., one of its direct competitors.
Answer: Regal Autos Inc. joins with Marcus Motors Inc., one of its direct competitors.