Under the Transaction Cost Economics Framework,when It Would Cost the Firm

question 43

Multiple Choice

Under the Transaction Cost Economics framework,when it would cost the firm more to pursue an activity in-house than obtaining that activity in the external market,the firm should:

• A) Consider horizontally integrating instead.
• B) Perform the activity in-house anyway in order to gain core competencies.
• C) Consider options such as short-term contracts or strategic alliances.
• D) Divest that particular business.

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Definitions:

Fertility

The natural capability of giving life, often measured by the ability to conceive and bear offspring.

American Woman

Could refer to a female citizen or resident of the United States, or to cultural, social, or political aspects related to American women.

Parenthood

The state or responsibilities of being a parent, including the care, education, and nurturing of children.

Developed Nations

Countries with advanced infrastructure, high living standards, and stable economies, typically characterized by high gross domestic product (GDP) per capita.