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Backward linkages can be defined as "the growth of an industry leads to the growth of the industries that supply inputs to it". As in the case of cotton industry, growth of the textile industry may support the growth of the cotton industry, which will lead to higher incomes for cotton farmers and will create a greater demand for goods and services in the countryside

Forward linkages exist when the growth of an industry leads to the growth of other industries that uses its output as input. The final product of cotton goes to consumers either through retailers or through manufacturers who open up their own shops to directly sell to consumer, thereby minimising the role of retailers in the channel process. A company can minimize cost of production and can maximize revenue when both backward and forward linkages work together in effective way.

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Juliet Olson

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3y ago

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Related Questions

What is Forward linkage and backward linkage as it relates agriculture and industry?

forward linkage


What is the difference of backward and forward linkages?

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Is a retail bakery a forward or backward linkage?

A retail bakery is primarily considered a forward linkage. This is because it takes the finished baked goods and sells them directly to consumers, creating a direct connection between production and consumption. In contrast, backward linkages would involve the supply chain aspects, such as sourcing raw materials like flour and sugar. Thus, the focus of a retail bakery is on the distribution and sale of products rather than the sourcing of inputs.


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What type of linkage is to be derived from a restaurant?

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What are the benefits of a forward linkage?

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Is forward linkage used in a salon?

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What kind of linkage is a funeral home business?

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What is the difference between an ether linkage and an ester linkage in organic chemistry?

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What is the difference between an ester linkage and an ether linkage in organic chemistry?

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Why would you use the word linkage versus link in a sentence?

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