A computer maker who decides to manufacture its own monitors and printers is engaging in ________.
A) outsourcing
B) vertical integration
C) transfer pricing
D) lower risk technique

Question

Quizplus · Accepted Answer

Vertical integration refers to a company's decision to produce its own inputs (backward integration) or to sell its own outputs (forward integration). In this case, the computer maker is expanding its operations to include the production of monitors and printers, which is an example of forward integration.

A Computer Maker Who Decides to Manufacture Its Own Monitors