Firms generally prefer not to outsource product design and manufacturing because:
A)these activities are common and standardized.
B)these operations are more or less static.
C)these operations involve a low investment.
D)these operations require investment in highly specific assets.

Question

Quizplus · Accepted Answer

Product design and manufacturing involve investment in highly specific assets such as specialized equipment, tooling, and machinery, which can be costly and difficult to transfer to a third-party supplier. As a result, firms prefer not to outsource these activities and instead keep them in-house to maintain control over their assets and capabilities.

Firms Generally Prefer Not to Outsource Product Design and Manufacturing