If the United States' largest bakery buys an agricultural firm that specializes in growing wheat, we would have an example of

Question

Quizplus · Accepted Answer

This is an example of a vertical merger, where the bakery (a downstream firm) acquires an agricultural firm (an upstream firm) to have more control over the supply chain and ensure a steady supply of the key ingredient (wheat) for their production process.

If the United States' Largest Bakery Buys an Agricultural Firm