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Forms of Industrial Organization

Horizontal Integration occurs when a business expands its control over other similar or closely related businesses. For example, an oil refining business would be horizontally integrated if it owned or controlled other oil refineries. Vertical Integration occurs when a business expands its control over other business that are part of its overall manufacturing process. For example, an oil refining business would be vertically integrated if it owned or controlled pipeline companies, railroads, barrel manufacturers, etc.


Similar terminology is also used to describe the forms of labor organization.