Which of the following is an example of backward integration?
A) development of iron-ore deposits in Venezuela and Australia by U.S. and Japanese automotive companies
B) fast-food companies opening new outlets in Beijing
C) Germany's Daimler-Benz merging with the U.S. Chrysler Corporation
D) Starbucks opening retail outlets in a grocery store
E) all of the above

Question

Quizplus · Accepted Answer

Backward integration involves a company acquiring or developing suppliers of the inputs or raw materials that it requires to manufacture its products. In this case, U.S. and Japanese automotive companies are developing iron-ore deposits in Venezuela and Australia to secure their supply of iron for manufacturing automobiles. The other options do not involve backward integration.

Which of the Following Is an Example of Backward Integration