The coming together of firms at different stages of the production process is known as?

The coming together of firms at different stages of the production process is known as vertical integration. In this process, a company merges with or acquires another company that is in a different stage of the supply chain. For example, a car manufacturer acquiring a tire company, or a food company acquiring a farm. This allows for better control over the supply chain, reduction in costs, and greater efficiency in production. Horizontal integration, on the other hand, refers to the coming together of firms at the same stage of the production process.