Learning objectives for each chapter have been provided to help you keep track of the key concepts you need to master in each chapter.

By the end of this chapter you will be able to:

1. Explain why organizations integrate or outsource and what the advantages and disadvantages of integration and outsourcing are
    
2. Understand the importance of transaction costs in determining whether to make (integrate) or buy/sell (outsource)
    
3. Explain the core ideas and understand the limitations of Transaction Cost Economics
    
4. Distinguish between the different types of uncertainty with which firms have to deal
    
5. Understand when and why firms integrate horizontally (merge) and the challenges of achieving horizontal integration