If a company begins its foreign sales by exporting through merchant distributors and then purchases a foreign sales subsidiary and locates product warehouses abroad, this
Would be a form of _____________________ integration.
A) vertical
B) horizontal
C) forward
D) backward
E) dual

Question

Quizplus · Accepted Answer

This is an example of forward integration, as the company is moving closer to the end customer by establishing a foreign sales subsidiary and warehouses, thus taking control of distribution and sales processes.

If a Company Begins Its Foreign Sales by Exporting Through