macroeconomics?

Question

integrations

Answer 1

Integrations are of two types. Horizontal and vertical. These examples would help you understand better.

Horizontal Integration
When a company expands its business into different products that are similar to current lines.

Eg:
For example, a hot dog vendor expanding into selling hamburgers.

Vertical Integration
When a company expands its business into areas that are at different points of the same production path.

Eg:
For example, a car company that is expanding into tire manufacturing. A company such as this is often referred to as vertically integrated.

Backward Integration
A form of vertical integration that involves the purchase of suppliers in order to reduce dependency.

Eg:
A good example would be if a bakery business bought a wheat farm in order to reduce the risk associated with the dependency on flour

Forward Integration
A business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its products.

Eg:
A good example of forward integration is when a farmer sells his/her crops at the local market rather than to a distribution center.