We R' Write currently purchases the wood used to make their pencils, the rubber used to make erasers for their pencils, and the lead for the pencils from other firms. However, We R' Write is considering purchasing these firms so they can personally produce all the components used for making pencils.

As an economist, what would you call the current way We R' Write is acquiring the products needed to make their pencils (purchasing from other firms)?

What benefits and problems could We R' Write have with the current way of doing business?

As an economist, what would you call We R' Write's proposal to purchase the firms that make the pencil components?

What benefits and problems could We R' Write have concerning the purchase of these other firms?