Since issues of strategic flexibility and organizational control loom even larger for international businesses than purely domestic ones,international business should be particularly wary of _______ into component part manufacture.

Question

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Vertical integration involves expanding operations into upstream or downstream stages of the industry value chain. While this can provide benefits such as improved control over quality and supply, it can also limit strategic flexibility and increase organizational control. This is particularly true for international businesses, as they face additional challenges related to cultural differences, regulatory environments, and logistical complexities. Component part manufacture is an example of downstream vertical integration, and international businesses should be cautious about pursuing it.

Since Issues of Strategic Flexibility and Organizational Control Loom Even