USA HISTORY

Detailed explanation-1: -A vertical integration structure involves a company taking over multiple stages of its production or sales processes rather than relying on external suppliers and trade partners.

Detailed explanation-2: -In microeconomics, management and international political economy, vertical integration is a term that describes the arrangement in which the supply chain of a company is integrated and owned by that company.

Detailed explanation-3: -There are three types of vertical integration – backward, forward, and balanced. Vertical integration allows the company to control the distribution or supply of its goods – allowing it greater control and efficiencies along the supply chain.

Detailed explanation-4: -If the electronics company decides to purchase the supplier to reduce manufacturing costs and streamline its operations, the acquisition would be an example of vertical integration.