Changes

'''Vertical integration''' is the process by which a [[corporation]] acquires related businesses in a [[supply chain]].  For example, a [[steel]] mill may acquire a smelter, a mining corporation, and a [[transport]] network.  This process is also referred to as "internalization"; the famous [[economist]] Coase theorized that, ideally, a firm would internalize all possible functions, until the [[transaction cost]] of internalizing outstripped the transaction cost of doing business with an unaffiliated firm.

'''Vertical integration''' is the process by which a [[corporation]] acquires related businesses in a [[supply chain]].  For example, a [[steel]] mill may acquire a smelter, a mining corporation, and a [[transport]] network.  This process is also referred to as "internalization"; the famous [[economist]] Coase theorized that, ideally, a firm would internalize all possible functions, until the [[transaction cost]] of internalizing outstripped the transaction cost of doing business with an unaffiliated firm.

[[template:economics]]

[[category:economics]]