When does TCE argue outsourcing will occur?
A) when asset specificity is low
B) when asset specificity is medium
C) when asset specificity is high
D) none of these

Question

Quizplus · Accepted Answer

Transaction Cost Economics (TCE) argues that outsourcing will occur when asset specificity is low because in such situations, the costs and risks associated with outsourcing are reduced, making it more efficient to contract out the work rather than perform it in-house.

When Does TCE Argue Outsourcing Will Occur