Which form of market integration vertical, horizontal, or conglomerate is most beneficial for the Philippine economy?
Answer (1)
For the Philippine economy, vertical integration is often the most beneficial form of market integration. Vertical integration involves controlling multiple stages of production or distribution within the same industry—such as a company managing both the manufacturing and retailing of a product. In the Philippines, this can,Reduce costs and improve efficiency – By cutting out middlemen, local businesses can lower production costs and increase profits.Enhance supply chain stability – Controlling inputs and outputs helps avoid delays and shortages, especially important in agriculture and manufacturing.Encourage industrial development – It promotes investments in infrastructure and technology, fostering long-term economic growth.While horizontal and conglomerate integration also have benefits, vertical integration directly supports domestic industries and reduces dependency on imports, aligning well with the country’s development goals.
