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

Question

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Horizontal integration refers to a growth strategy where a company merges with or acquires similar firms to increase market share and competitiveness. It does not directly relate to reducing exposure to commodity price movements. The other options - vertical integration, long-term storage of inventory, and futures contracts - are commonly used by firms to manage commodity price risks.

Firms Use All of the Following for Reducing Their Exposure