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Ceteris paribus, which optimal method of input procurement (spot exchange, contracts, or vertical integration) would be...

Ceteris paribus, which optimal method of input procurement (spot exchange, contracts, or vertical integration) would be most likely in this situation? A high degree of specialization in a simple, easy to predict environment.

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Vertical integration is a method where the organization can control the method of production as well as the benefits of production.This strategy is followed in order to expand the business and for controlling the different stages of production.Specialization is a method which stress on the stages of production . Vertical integration shifts its focus from different stages to big production .In vertical integration the firm internally tries to produce the inputs it needs .So vertical integrations takes control of overall production as well as the different stages.

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