For each case, identify the type of integration used by the multinational enterp

Question

For each case, identify the type of integration used by the multinational enterprise. Determine that each case is either Forward, Horizontal, Conglomerate, or Backward.

A. Kuruma, a Japanese automaker, establishes an auto assembly plant in Mexico and the United States. __________

B. An American multinational oil and gas corporation acquires a copper-mining subsidiary in Chile. ___________

C. Denim Outfitters, a U.S. manufacturer, opens retail stores in London to sell its products. ___________

D. BeautyFirst, a cosmetics seller, enters into the production of some of its cosmetics. ___________

Explanation / Answer

A. Kuruma, a Japanese automaker, establishes an auto assembly plant in Mexico and the United State. This is an example of horizontal integration.

B. An American multinational oil and gas corporation acquires a copper-mining subsidiary in Chile. This is an example of conglomerate integration

C. Denim Outfitters, a U.S. manufacturer, opens retail stores in London to sell its products. This is an example of forward integration.

D. BeautyFirst, a cosmetics seller, enters into the production of some of its cosmetics. This is an example of backwards integration.

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