Answer:
Vertical integration is a theory that describes a style of ownership and control. Vertically integrated companies are linked by a hierarchy and share the same owner. Generally, members of this hierarchy develop different tasks that combine to meet a common need. That common need comes from generating economies of scale in each company, and synergies within the corporation. All this translated into the search for greater profits as well as generating greater added value from the primary sector, to the final consumer.
The classic example of vertical integration is that of oil companies: the same company can gather under its control tasks as diverse as exploration, drilling, production, transportation, refining, commercialization, commercial distribution and retail sale of products that process.
