Suppose that an American automobile manufacturer establishes foreign subsidiaries to market the automobiles.This practice is referred to as

Question

Quizplus · Accepted Answer

Forward vertical integration involves a firm establishing foreign subsidiaries to handle the marketing or distribution of their products. This allows the firm to have more control over the marketing and sales process and ensures that their products are marketed in a manner consistent with their brand image. In this case, the American automobile manufacturer is using forward vertical integration by establishing foreign subsidiaries to market their automobiles.

Suppose That an American Automobile Manufacturer Establishes Foreign Subsidiaries to Market