Transaction Cost Analysis in Vertical Integration Decisions Questions

1. Explain how transaction cost analysis can provide insights into vertical integration decisions.(100 words)

2. Why does Apple integrate forward (have their own retail stores, customer service operations, etc.)? why doesn’t McDonald integrate backwards (i.e. they do not raise their own cattle, or they do not grow their own potatoes; they source it from suppliers instead)? Explain from the transaction cost perspective. (150 words)

no ciatation

 

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