Abstract
The article reports on research pertaining to the impact of market liberalization on vertical integration. Specifically Argentina's transformation to a free market economy is discussed. The country's market liberalization reforms in the 1980's were designed to reduce barriers to free trade and integrate Argentina into the world economy. Research has shown a clear relationship between market liberalization and reduced reliance on vertical integration in Argentina. As Argentinian firms increased their input, they could specialize, focus on their core competencies, and develop competitive advantages.
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