Explain major advantage to outsourcing-reduces capital cost


Evaluate the following quote: "The major advantage to outsourcing is that it reduces a company's capital cost, freeing the company to use scarce capital for other purposes". Thoroughly explain why a corporation would choose outsourcing as an option instead as opposed to vertical integration. 250 words or more and references

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Microeconomics: Explain major advantage to outsourcing-reduces capital cost
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