Which of the following best illustrates forward vertical integration?
A) A firm that manufactures and sells car engines to major automobile companies launches its own line of cars.
B) A chain of ice cream parlors launches a brand of toys and accessories for children.
C) A multinational coffee chain sources its coffee beans from plantations in Brazil and Vietnam.
D) A designer shoe company that previously purchased leather from external suppliers establishes its own leather tannery.

Question

Quizplus · Accepted Answer

A firm that manufactures car engines and sells it to major automobile companies launching its own line of cars best illustrates forward vertical integration. Forward vertical integration involves moving ownership of activities closer to the end customer.

Which of the Following Best Illustrates Forward Vertical Integration