________ is a method of hedging wherein a firm and its supplier merge so that an increase in the price of a commodity raises the firm's costs and the supplier's revenues.
A)Storage
B)Horizontal merger
C)Business rationalization
D)Vertical integration
E)Internalization

Question

Quizplus · Accepted Answer

Vertical integration involves merging with a supplier to achieve greater control over the supply chain and minimize the impact of fluctuations in commodity prices. By doing so, the firm and supplier effectively become one entity, and any increase in prices will benefit both parties.

________ Is a Method of Hedging Wherein a Firm and Its