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Consider the "Mapping American Politics" box. Following the 9/11 terrorist attacks, the Department of Homeland Security distributed funds to states in proportion to the size of the state economies.
Vertical Integration
A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.
Economies Of Scale
The cost advantage achieved by businesses when production becomes efficient, leading to a lower cost per unit as output increases.
Virtual Companies
Companies that rely on a variety of supplier relationships to provide services on demand. Also known as hollow corporations or network companies.
Few Suppliers
Refers to a market situation where only a limited number of vendors provide a certain product or service, potentially leading to less competition and higher prices.
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