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Economies of vertical integration |
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Economies of vertical integrationProduced by achieving lower operating costs by owning all components of production and sometimes sales outlets rather than contracting for companies in the outside marketplace.Economies of vertical integration Similar MatchesIntegrationIntegrationEconomic integration refers to reducing barriers among countries to transactions and to movements of goods, capital, and labor, including harmonization of laws, regulations, and standards. Common forms include FTAs, customs unions, and common markets. Sometimes classified as shallow integration vs. deep integration. DisintegrationDisintegrationAnother term for fragmentation. Used by Feenstra (1998). Horizontal integrationHorizontal integrationProduction of different varieties of the same product, or different products at the same level of processing, within a single firm. This may, but need not, take place in subsidiaries in different countries. Deep integrationDeep integrationRefers 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. Economic integrationEconomic integrationSee integration. Further SuggestionsBackward integrationVertical integration Shallow integration Trade integration Forward integration |
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