If a company begins its foreign sales by exporting through a merchant distributor who takes title to the product and performs all the necessary foreign sales functions, this would be a form of _____ integration.
A)vertical
B)horizontal
C)forward
D)backward
E)dual

Question

Quizplus · Accepted Answer

Forward integration occurs when a company moves downstream in the supply chain, taking control of the distribution process. In this scenario, the company is integrating forward by using a merchant distributor to handle sales, which is a step closer to the end consumer.

If a Company Begins Its Foreign Sales by Exporting Through