Vertical Integration

question 112

Multiple Choice

Vertical integration:

• A) occurs when a firm purchases its inputs in a market.
• B) is attractive when relationship-specific exchange is unimportant.
• C) occurs when a firm produces its own inputs.
• D) is a spot exchange phenomenon.

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Definitions:

Cognitive Dissonance

State of psychological tension produced by simultaneously having two opposing cognitions. People are motivated to reduce the tension, often by changing or rejecting one of the cognitions. Festinger proposed that we seek harmony in our attitudes, beliefs and behaviours and try to reduce tension from inconsistency among these elements.

Japanese Participants

Individuals from Japan taking part in an activity, study, or event.

American Participants

A term often used in research studies indicating the individuals taking part in the study are from the United States.

Social Cues

Nonverbal or environmental signals that are interpreted by individuals to guide their social interactions.