A jewelry company buys a gold mine.This is an example of
A)pooled interdependence.
B)a strategic alliance.
C)reciprocal interdependence.
D)vertical integration.
E)interlocking interdependence.

Question

Quizplus · Accepted Answer

Vertical integration is a business strategy when a company takes control over several stages of the supply chain to drive greater efficiency and reduce costs. In this case, a jewelry company buying a gold mine is an example of vertical integration because it allows the company to control the source of its raw material and ensure a reliable supply.

A Jewelry Company Buys a Gold Mine