When substantial investments in specialized assets are required to manufacture a component,the firm will prefer to contract it out to a supplier.

Name: When substantial investments in specialized assets are required to manufacture a component,the firm will prefer to contract it out to a supplier.
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When substantial investments in specialized assets are required, firms often prefer to produce in-house to maintain control and protect their investment, rather than contracting out to a supplier.

When Substantial Investments in Specialized Assets Are Required to Manufacture