Advanced Steel, Inc., needs a particular type of brick to line its kilns in order to safely achieve the high temperatures needed for the unusually strong steel it produces.The clay to make this brick is very rare, and only two brick plants in the United States make this type of brick.Advanced Steel has decided to buy one of these brick plants.This is an example of:
A) backward integration.
B) forward integration.
C) horizontal integration.
D) virtual integration.

Question

Quizplus · Accepted Answer

Backward integration occurs when a company acquires or merges with a supplier or manufacturer of its products, in this case, Advanced Steel acquiring a brick plant to secure its supply of rare bricks.