When one firm must invest in specialised assets to supply another,__________ is created.

Question

Quizplus · Accepted Answer

The situation described in the question is an example of mutual dependency, where one firm depends on another firm for a supply of specialised assets. This interdependency can create a situation where both firms need each other to succeed, as they have invested resources and assets into the relationship. Symbiotic relationships and alliances generally involve a broader range of cooperation and mutual benefit beyond the specific investment in specialised assets described in the question. Business relationships are a more general category and do not capture the specific nature of this type of interdependency.

When One Firm Must Invest in Specialised Assets to Supply