A drawback of short-term contracting as an alternative to making a component in-house is that Group of answer choices it fails to allow a long planning period that individual market transactions provide. the buying firm cannot demand lower prices due to the lack of a competitive bidding process. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent.