When a firm expands in the production process to supply its own raw materials and intermediate products or to provide its own sales or distribution networks,the process is called

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Quizplus · Accepted Answer

Vertical integration involves a company expanding its production process to supply raw materials and intermediate products or to provide sales and distribution networks. Therefore, choice C is the best answer. Horizontal integration involves a company merging with or acquiring another company in the same industry or at the same stage of production. Risk diversification refers to spreading investments across multiple assets or activities to minimize risk, which is not applicable to this scenario.

When a Firm Expands in the Production Process to Supply