When a firm becomes horizontally integrated it outsources its manufacturing.

Question

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Horizontal integration involves the acquisition or merger of companies that operate in the same industry or produce similar products. It usually results in the expansion of a firm's operations to include manufacturing facilities, distribution networks, or other key resources. Therefore, it is unlikely that a horizontally integrated firm would outsource its manufacturing as it would want to control the production process as part of its overall strategy.

When a Firm Becomes Horizontally Integrated It Outsources Its Manufacturing