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Vertical integration
vertical
backward integration is a form of vertical integration in which firm's control of its inputs or supplies. forward integration is a form of vertical integration in which firm's control of its distribution.
Benjamin. Klein has written: 'The role of U.S. multinational corporations in recent exchange crises' -- subject(s): American Corporations, International business enterprises 'Vertical integration appropriable rents and the competitive contracting process'
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The idea of vertical integration was introduced by Andrew Carnegie.
A vertical mill is the same as an vertical integration mill. It is built vertical, not horizontal.
Virtual Integration is to have control on the departments or businesses in the chain without owning them.where, Vertical Integration is like owning the departments or businesses in the chain.
A company may buy out it's supplier in a form of vertical integration.
It allowed them to predict and plan their production processes. They controlled their supply of raw materials. It allowed them to control all aspects of sale and manufacture of a single product.
1989
An advantage of backwards vertical integration would be that the profit of the supplier is absorbed by the expanded business.