If the owner of a jewelry store who normally purchased diamonds from a diamond brokerage firm were to open his own diamond brokerage firm, this would be an example of forward vertical integration.

Question

Quizplus · Accepted Answer

Forward vertical integration occurs when a company moves closer to the end consumer in the supply chain, such as a manufacturer opening retail stores. Opening a diamond brokerage firm would be backward vertical integration, as it involves moving closer to the raw material source.

If the Owner of a Jewelry Store Who Normally Purchased