Industrial combination (or integration) is the coming together of two or more firms in order to form one large economically stable firm. To obtain stable prices. To obtain raw materials from direct sources. In order to achieve large scale of production.
What is a combination of industrial units?
It is a type of combination which brings together a number of industrial units which are not identical. They have different successive stages in production and manufacture of the finished goods. In this combination usually finished goods of one industry become raw material for the other.
Why are industrial combinations gaining ground?
Industrial combinations or mergers are gaining ground these days. In fact these are outstanding feature of modern industrialization. Behind each formation of industrial combination there are certain motivating forces and factors. There are certain causes responsible for the growth of combinations.
