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We discuss the foundation of the Trojan Horse Method (THM) within the Inclusive Non-Elastic Breakup (INEB) theory. We demonstrate that the direct part of the INEB cross section, which is of two-step character, becomes, in the DWBA limit of the three-body theory with appropriate approximations and redefinitions, similar in structure to the one-step THM cross section. We also discuss the connection of the THM to the Surrogate Method (SM), which is a genuine two-step process.