Answer :
Final answer:
Horizontal integration involves expanding into similar production activities, while vertical integration is moving into different stages of the value chain.
Explanation:
Horizontal integration is when a company expands into similar kinds of production activities or increases the volume of current production activities. It involves acquiring or merging with a competitor in the same industry to broaden the product offerings.
Vertical integration, on the other hand, occurs when a firm expands into a different stage of the value chain in which it already operates. This could be moving either upstream or downstream in the production process.
In this scenario, the hot dog vendor adding hamburgers and tacos demonstrates horizontal integration as they are expanding their product line with similar food items.
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