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What type of specialized investment exists when job skills are not transferable to other employers?

A. human capital
B. site specificity
C. competitive specificity
D. physical-asset specificity

1 Answer

3 votes

Final answer:

Physical-asset specificity is the specialized investment type where job skills are not transferable to other employers, leading to economic dependency between the employer and employee (D).

Step-by-step explanation:

The type of specialized investment where job skills are not transferable to other employers is known as physical-asset specificity.

This term describes a situation where the skills and knowledge, or human capital, that workers acquire are so specialized to a particular company's operations that they cannot be easily applied to a position at a different company. This concept is commonly discussed in relation to transaction cost economics, where the investment in such specific skills can lead to a form of economic dependency between employers and employees.

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