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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1474 |
Essay's paper body
This could be explained with the difficulty of negotiating good contract condition when the company cannot guarantee quantities which could allow achieving economies of scale to its trading partners and in such cases most companies prefer to make the product rather than to buy it.
Technological uncertainty refers to the frequency of product changes, which occur in the product’s life cycle...
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As nowadays it is easy, cheap and fast to communicate globally and exchange technical information and product specifications and drawings, technological uncertainty is reported to have little effect on make-or-buy decisions.
Higher frequency of necessity of contract updates encourages companies to make the product in-house, as contract re-negotiation is costly and time-consuming process...
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General points of the essay
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