A vertically integrated firm would almost never be a MNC because the organizational costs of going overseas are simply too high.

Question

Quizplus · Accepted Answer

A vertically integrated firm can indeed be a multinational corporation (MNC) as vertical integration and international expansion address different aspects of a company's growth strategy. Vertical integration involves a company expanding its operations into different stages of production or distribution within its industry, while becoming an MNC involves expanding operations into multiple countries. The decision to go overseas and become an MNC is influenced by factors such as market potential, cost savings, and strategic positioning rather than just the organizational costs. Many MNCs are vertically integrated to control their supply chains more effectively across different countries.

A Vertically Integrated Firm Would Almost Never Be a MNC