Final answer:
Supply chain integration occurs when firms in a supply chain coordinate business processes to work seamlessly, leading to economic gains and innovation while improving global market efficiency.
Step-by-step explanation:
When multiple firms or their functional areas in a supply chain coordinate business processes so that they are seamlessly linked to one another, this is referred to as supply chain integration. This integration allows companies to work together more effectively and efficiently, leveraging advancements in technology, transportation, and communication to split up the value chain. As parts of the value chain become more specialized, it enables firms to focus on innovation and to produce more refined products. Sharing these advancements with developing countries enhances the global market, while protecting labor rights ensures a sustainable and equitable supply chain network.