gcse economics - firms - integration
There are several ways in which businesses can join together...
HORIZONTAL INTEGRATION
Two businesses at the same stage of production
e.g. 2 tablemakers join together
FORWARD VERTICAL INTEGRATION
A business takes over or merges with a businesses at the next stage of production
e.g. table maker joins with a shop
BACKWARD VERTICAL INTEGRATION
A business takes over or merges with a business at the previous stage of production
e.g. a table maker joins with a tree cutter
ACTION
Which type of integration are each of the following examples:
a Lloyds TSB and Halifax bank merge
b A brewer takes over an off license
c A brewer takes over a hop grower
SMART
THINKING
D Why might a table maker join with a) another table maker b) a shop c) a tree cutter?
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
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