Lesson 3: Market Integration

According to Faminow and Benson ( 1990) market integration are those

were prices are determined interdependently; which is assumed to mean
that price change in one market affects the prices in other market.

Types of market integration

1. Backward vertical integration- involves acquiring a business
operating earlier in the supply chain.
2. Conglomerate integration- involves the combination of firms that
are involved in unrelated business activities.
3. Forward vertical integration- involves acquiring a business further
up in the supply chain.
4. Horizontal integration- hence, businesses in the same industry and
which operates at the same stage of the production process are
combined.