A jewelry company buys a gold mine.This is an example of
A)a joint venture.
B)a strategic alliance.
C)a merger.
D)vertical integration.
E)establishing legitimacy.

Question

Quizplus · Accepted Answer

When a jewelry company, which operates further down the supply chain, buys a gold mine, which is an upstream operation, it is an example of vertical integration. This is because the company is integrating a supplier or a source of raw materials (the gold mine) into its business operations, thereby controlling more stages of the supply chain.

A Jewelry Company Buys a Gold Mine