What type of merger occurs when two manufacturers in different geographic locations merge?

The correct answer pertains to a horizontal geographic extension merger. This type of merger involves two manufacturers that produce similar products but operate in different geographic regions. The primary goal is often to expand the market reach and increase overall market share by combining the resources and customer bases of the merging companies, thus allowing them to deliver products to a broader geographic area without necessarily changing the nature of the products offered.

In this case, the focus is on the geographic aspect of the merger, as the companies involved are expanding their operational footprint rather than diversifying their product lines or integrating different stages of production. This type of merger can lead to economies of scale and improved efficiencies in distribution and logistics.

The other options involve different scenarios of mergers that do not accurately describe the situation at hand:

• A vertical geographic extension merger typically involves companies at different stages of production in the same industry but located in different regions. This does not align with the definition provided in the question.

• A horizontal product extension merger involves companies that offer different products but operate in the same industry and geographic area. The emphasis here is on product diversity rather than geographic expansion.

• A vertical product extension merger relates to businesses at different levels of the supply chain offering different products. This concept shifts the focus away from geographic