Forward Integration

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DEFINITION of 'Forward Integration'

A business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its products.

INVESTOPEDIA EXPLAINS 'Forward Integration'

A good example of forward integration is when a farmer sells his/her crops at the local market rather than to a distribution center.

RELATED TERMS
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  3. Horizontal Integration

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  5. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
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    After a prolonged period of corporate scandals involving large public companies from 2000 to 2002, the Sarbanes-Oxley Act ... Read Full Answer >>
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