A farmer realizes that he is not getting fair price from the agents who buy produce from him and sell it to the markets. As such, he decides to sell produce directly to the local market. This is an example of:
A) forward horizontal integration
B) backward vertical integration
C) horizontal diversification
D) backward horizontal integration
E) forward vertical integration

Question

Quizplus · Accepted Answer

Forward vertical integration occurs when a company or individual moves closer to the end customer in the supply chain, such as a farmer selling directly to the market instead of through intermediaries.

A Farmer Realizes That He Is Not Getting Fair Price