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IT 6th chapter

mahesh mahi (67 Points)

22 March 2018

what is forward and backward linkages ?? plz explain with example

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CA Vijeta Nathani (Chartered Accountant) (505 Points)
Replied 23 March 2018

Forward Linkages

A forward linkage is created when investment in a particular project encourages investment in subsequent stages of production.

Distribution chain connecting a producer or supplier with the customers.

Backward Linkages

A backward linkage is created when a project encourages investment in facilities that enable the project to succeed.

Channels through which information, material and money flow between a company and its suppliers and create a network of economic interdependence.

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shilpi (student) (780 Points)
Replied 25 March 2018

Forward linkage deal with the impact of formulation on implementation while the backward linkage are concerned with the impact in the opposite direction