Question: A firm will prefer to make the component internally rather than contract it out to a supplier, because of all of the following reasons EXCEPT:

A firm will prefer to make the component internally rather than contract it out to a supplier, because of all of the following reasons EXCEPT:
A firm will prefer to make the component internally rather than contract it out to a supplier, because of all of the following reasons EXCEPT:
it needs to maintain control over its proprietary technology.
substantial investments in specialized assets are required to manufacture a component.
the firm completely trusts the independent supplier to play fair.
it runs the risk that suppliers will expropriate the technology for their own use.

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