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Discussion Questions

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1.Why did Boeing decided to extensively outsource its production? What are the benefits to

Boeing from outsourcing?


2.What are the potential costs and risks to Boeing from outsourcing?


3.What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign

countries, and particularly China? What are the potential costs and risks to Apple?


4.In addition to Apple, who else benefits from Apple’s decision to outsource assembly to

China? Who are the potential losers here?


5.What are the potential ethical problems associated with outsourcing assembly jobs to

Foxconn in China? How might Apple deal with these?


6.On balance, do you think that the kind of outsourcing undertaken by Apple is a good thing or

a bad thing for the American economy?


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