An electronic company takes over one of its original suppliers in a merger.This is an example of:

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Vertical integration is the acquisition of a company involved in a different stage of the same production process, such as a supplier. In this case, the electronic company is acquiring one of its suppliers, which is an example of vertical integration. Horizontal integration involves the merger of companies within the same industry or market. Cointegration refers to the long-term relationship between two or more variables, typically used in statistical forecasting models. Conglomerate integration involves the merger of companies that operate in unrelated industries.

An Electronic Company Takes Over One of Its Original Suppliers