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Transaction Cost: A Viewpoint From Outsourcing

Ge Zhang

Abstract

Enterprises' outsourcing decisions include the comparison and banance of transaction cost under different governance mechanisms.Williamson-framed outsourcing can maximumly save transaction cost.Considering the calculation and comparasion of production and transaction cost,enterprises should choose appropriate corporate gorernance mechanisms in different transaction cases.

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Key concepts: Transaction cost, Outsourcing, Business, Corporate governance, Database transaction, Industrial organization, Production (economics), Operations management