Suppose that an American automobile manufacturer establishes foreign subsidiarie

Question

Suppose that an American automobile manufacturer establishes foreign subsidiaries to market the automobiles. This practice is referred to as? Backward vertical integration Forward vertical integration Backward conglomerate integration Forward conglomerate integratio Suppose that an American automobile manufacturer establishes foreign subsidiaries to market the automobiles. This practice is referred to as? Backward vertical integration Forward vertical integration Backward conglomerate integration Forward conglomerate integratio Backward vertical integration Forward vertical integration Backward conglomerate integration Forward conglomerate integratio Backward vertical integration

Explanation / Answer

ans -- backward vertical integration. a company indulges in BACKWARD VERTICAL INTEGRATION when it controls subsidiaries that produce some of the inputs used in the production of its products. For example, an automobile company may own a tire company, a glass company, and a metal company

where as a company indulges in FORWARD VERTICAL INTEGRATION when it controls distribution centers and retailers where its products are sold.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.