The Classic Justification of Vertical Integration Relies on the Conviction

question 74

Multiple Choice

The classic justification of vertical integration relies on the conviction that:

• A)The co-location of plants enables each owner to avoid being bound to the other partner for its strategic decisions
• B)The physical integration of two processes, for example linking the two stages of production in a single location, results in cost savings
• C)The physical location of two processes on the same site does not explain why there is not just one owner
• D)Each process owner realizes savings by exploiting its assets in an alliance framework

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Definitions:

Primary Ideology

The set of fundamental beliefs and values that are widely shared within a society and shape its culture and social relations.

Material Contradictions

Discrepancies or conflicts within the material aspects of a society, such as economic disparities or contradictions between productive forces and relations of production.

Social Change

Significant alteration over time in behavior patterns, cultural values and norms, and social structures.

Dialectical Philosophers

Thinkers who employ the dialectical method, involving the logic of contradiction and opposition, to explore and understand social and philosophical issues.