If a car assembly operation were to buy a component maker this is a form of:
A) Upstream integration
B) Downstream integration

Question

Quizplus · Accepted Answer

Upstream integration involves a company buying a supplier or component maker, which would be the case if a car assembly operation were to buy a component maker. This allows the assembly operation to have greater control over the supply chain and potentially reduce costs. Downstream integration, on the other hand, involves a company buying a distributor or retailer and would not make sense in this scenario.

If a Car Assembly Operation Were to Buy a Component