Firms use all of the following for reducing their exposure to commodity price movements EXCEPT:

Question

Quizplus · Accepted Answer

Horizontal integration involves acquiring production assets for a similar or identical product, which does not necessarily reduce exposure to commodity price movements. Long-term storage of inventory, futures contracts, and vertical integration (acquiring assets up or down the supply chain) all provide ways for firms to mitigate the impact of commodity price movements on their operations.

Firms Use All of the Following for Reducing Their Exposure