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Company A has made substantial investments in specialized assets and, in theory, because of this investment, has become dependent on Company B. Company B can threaten to change orders to other suppliers as a way of driving down Company A's prices. Company B is highly unlikely to change suppliers because it is, in turn, a major supplier to Company A and also has made major investments in specialized assets to serve their needs. These companies are mutually dependent because of the specialized investment the other has made. Thus, Company B is unlikely to renege on any pricing agreements with because it knows that Company A would respond the same way. This is an example of which of the following?
Japanese Yen
The official currency of Japan, used as a medium of exchange within the country.
Toyota Camry
A model of automobile manufactured by Toyota, known for its reliability, fuel efficiency, and appeal in the global midsize sedan market.
South African Rand
The South African Rand is the official currency of South Africa, represented by the symbol ZAR.
Dell P.C.
Dell P.C. refers to personal computers manufactured by Dell Inc., an American multinational computer technology company known for developing, selling, repairing, and supporting computers and related products and services.
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