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liraira [26]
3 years ago
15

What was an effect of vertical integration?

History
2 answers:
serious [3.7K]3 years ago
8 0

Vertical integration occurs when a company either purchases the supplier where they get their raw materials or purchase the next step down the value chain. This allows for INCREASED controls and cheaper products because you eliminate the markups from supplier to producer. This allows companies to make even more profit.

Irina18 [472]3 years ago
6 0

Answer:

a. it allowed ultimate control of production and a cheaper product and greater profit.

Explanation:

Vertical integration is when a company acquires or creates a branch of the company to create and to produce the primary resources to create their products, this allows the compnay to gain control over the production and have a greater profit since it increments the profit of the production of the primary resources and the final product.

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