Backward integrationAcquisition by a firm of its suppliers.
Another term for fragmentation. Used by Feenstra (1998).
Deep integrationDeep integration
Refers to economic integration that goes well beyond removal of formal barriers to trade and includes various ways of reducing the international burden of differing national regulations, such as mutual recognition and harmonization. Contrasts with shallow integration.
Vertical integrationVertical integration
Production of different stages of processing of a product within the same firm.
Forward integrationForward integration
Acquisition by a firm of a larger part of its distribution chain, moving it closer to selling directly to its ultimate customers.
Economies of vertical integrationEconomies of vertical integration
Produced by achieving lower operating costs by owning all components of production and sometimes sales outlets rather than contracting for companies in the outside marketplace.