When there are technical efficiencies from co-locating vertically-related processes (e.g.the production of pulp and paper or the production of steel and steel strip),vertical integration (in the form of common ownership of the vertically-linked activities)is essential.

Question

Quizplus · Accepted Answer

Technical efficiencies from co-locating vertically-related processes can be realized through arrangements other than common ownership, such as long-term contracts or strategic alliances, making vertical integration one option among several to achieve such efficiencies.

When There Are Technical Efficiencies from Co-Locating Vertically-Related Processes (E