Bright Idea Co. specialises in manufacturing light bulb filaments. It is considering outsourcing some of it activities in order to reduce costs and improve customer service.
Which of the following is an example of asset specificity that is likely to be an important consideration in their decision?
A . An R&D manager who has been in the business for 18 years and has specialist knowledge of the formulations.
B . A building that has been designed specifically for manufacturing light bulb filaments.
C . High tech and expensive filling machines in the factory.
D . A sales director who is well known and popular throughout the industry.
Answer: A