Specialty 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 U.S. make this type of brick. Specialty Steel has decided to buy one of these brick plants. This is an example of

Question

Quizplus · Accepted Answer

Backward integration occurs when a company acquires or merges with a supplier or producer of its raw materials, as Specialty Steel is doing by buying a brick plant that supplies the necessary bricks for its kilns.