Sharing the expenses of investment in production assets or inventory, or making long-term supply or purchase guarantees are examples of vertical integration.

Question

Quizplus · Accepted Answer

These examples describe forms of strategic partnerships or alliances, not vertical integration. Vertical integration involves a company expanding its operations into different stages of production within its own industry, either upstream (towards raw materials) or downstream (towards end consumers), rather than sharing expenses or making guarantees with other companies.

Sharing the Expenses of Investment in Production Assets or Inventory