A fast-food giant invests in potato farms in the Midwest in order to stabilize its raw material prices.This is an example of:

Question

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This is an example of backward integration, which involves a company investing in its suppliers to ensure a stable supply of raw materials and control over costs. By investing in potato farms, the fast-food giant can ensure a consistent supply of potatoes at prices that are advantageous to the company.

A Fast-Food Giant Invests in Potato Farms in the Midwest