ABSTRACT
This and the next chapters will continue the overall theme of Part II of this work, analysis of the boundaries of the firm, but shift attention to the integration of different activities within a single organisation. More specifically, the first half of this chapter will examine vertical integration. Following this, the discussion turns to an examination of related diver-sification involving expansion into areas related to a core production and/or distribution activity. The arguments developed here are separated from the complementary discussion in the next chapter because the analysis of vertical integration and related diversification are based on similar principles. Such principles are somewhat different to those underlying conglomerate and multinational development which are examined in Chapter 6.
