It's that time of year again - the March Madness basketball tournament. In addition to some friends, you've also invited one of your neighbors to join you to watch the game. As everyone is sitting around the TV waiting for the things to start, a report comes on the news that a major American automobile assembler is moving a portion of its manufacturing to one of its own factories in another country. Never one to let a debate go by, your neighbor says, "You see? This is what I've been saying for years. All these companies are doing is outsourcing American jobs so they can make their products cheaper. That's the only reason companies outsource anything - to cut costs." Given his response to the news report on the television: 1. Having now had a strategic management course, how accurate is his rationale about why firms outsource? 2. How is the concept of outsourcing related to the scope of a firm? 3. If there are reasons to outsource other than the one your neighbor has described, what are some of the main reasons that firms outsource particular activities within their value chain