Question: Define vertical integration and differentiate between forward vertical integration and backward vertical integration. Identify the three fundamental explanations of how vertical integration can create value

  1. Define vertical integration and differentiate between forward vertical integration and backward vertical integration.
  2. Identify the three fundamental explanations of how vertical integration can create value and discuss how value is created under each.
  3. Identify three reasons a firm may be able to create value through vertical integration when most of its competitors are not able to create value through vertical integration.

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