Question: A firm must decide whether to make a component part in-house or to contract it out to an independent supplier. Manufacturing the part requires a

A firm must decide whether to make a component
A firm must decide whether to make a component
A firm must decide whether to make a component part in-house or to contract it out to an independent supplier. Manufacturing the part requires a non-recoverable investment in specialized assets. The most efficient suppliers are located in countries with currencies that many foreign exchange analysts expect to appreciate substantially over the next decade. What would you suggest? O Manufacturing the component in-house O Outsourcing manufacturing to an independent supplier An advantage of engaging in in-house production (.e., "making") of products and components is that it enables a firm to protect the proprietary technologies that it has O firms will have fewer subunits to control O it will help the firm capture more orders from other countries O firms can make better use of the location advantages of certain countries

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