Which of the following factors is not an explanation for the lack of vertical integration between steel producers and shipbuilders?
A)The market for steel has many suppliers and buyers,good information flows,and little need for transaction-specific investments
B)Steel is a commodity product available in standardized grades
C)The world's biggest shipbuilding countries (South Korea,Japan,and China)are also among the leading steel producing countries
D)Steel production and shipbuilding are strategically very different industries

Question

Quizplus · Accepted Answer

The fact that the world's biggest shipbuilding countries are also leading steel producers does not explain the lack of vertical integration. Vertical integration is more influenced by market dynamics, product standardization, and strategic differences between industries.

Which of the Following Factors Is Not an Explanation for the Lack