make

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make

or

buy

the decision by a firm on whether to make a component or product itself or to buy it from an external supplier (see OUTSOURCING). The decision will depend upon the combined production costs and TRANSACTION COSTS of the alternatives. Sometimes a firm may adopt mixes of the two policies, producing some quantity of the product itself and buying the remainder, depending upon the relative costs of the sources and security of supply considerations. See TRANSACTION for a more detailed discussion. See INTERNALIZATION, VERTICAL INTEGRATION.
References in classic literature ?
As he broke from the dense wood and came in sight of the vessels again, he was filled with consternation to see that the Arrow was making sail and that the cruiser was already under way.
As to making sail, we had none, nor if we had could we have done anything with it; so we worked at the oar towards the land, though with heavy hearts, like men going to execution; for we all knew that when the boat came near the shore she would be dashed in a thousand pieces by the breach of the sea.
Nick heaved a sigh of relief and relaxed, listening to the rattle and chant as they weighed anchor, the shouts and drumming feet of the crew making sail, feeling the surging lift of the keel.