An oil refinery secures land leases and develops its own drilling capacity to ensure a constant supply of crude oil.This is an example of forward integration.

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This is an example of backward integration. Vertical integration occurs when a firm becomes its own supplier or distributor. The firm incorporates more processes toward the original source of raw materials (backward integration) or toward the ultimate consumer (forward integration).

An Oil Refinery Secures Land Leases and Develops Its Own