Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer me :) For years it has been cheaper to manyfacture many products overseas than in the United States. Labor is still less expensive

Please answer me :)

For years it has been cheaper to manyfacture many products overseas than in the United States. Labor is still less expensive overseas than in the U.S., but the cost difference has been decreasing.

Late in 2012, Apple anounced it would be building some Mac computers in the United States for the first time in about 10 years. It will be investing $100 million in 2013 in these new U.S. manufacturing facilities.

In 2013 Google's Motorola announced that it would be assembling its Moto X smart phone in Forth Worth, Texas, making it the first smartphone assembled in the United States. Also, in 2013 Lenovo opened a new ThinkPad manufacturing facility in North Carolina. For these companies, it is likely that the capitalbudgeting proposals for the U.S manufacturing sites did not meet the company's standard capital budgeting criteria. Yet the companies are still opting to manufacture some products in the United State, where it is, for the time being, more expensive than other locations.

Questions:

1. Why did Apple make an announcment in 2012 about its manufacturing operations upcoming in 2013?

2. What qualitative factors would likely have been considered when Apple, Google, and Lenovo made their decisions to invest in U.S. manufacturing facilities? In other words, why would Apple, Google and Lenovo decide to manufacture products in the United States when all of these companies have well-established facilities and supply chains in China.

3. What chalenges will these companies likely face in manufacturing products in U.S plants?

4. What stakeholders are impacted either positively or negatively, from the decision to manufacture in the United States? How are these stakeholders impacted?

5. What ethical issues potentially arise from not producing in the lowest cost location?

Thankyou

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Non Specialists

Authors: Eddie McLaney, Peter Atrill

2nd Edition

0135717469, 9780135717462

More Books

Students also viewed these Accounting questions

Question

what is gross private domestic investment and what does it measure

Answered: 1 week ago

Question

=+ Is the information documented and verifiable?

Answered: 1 week ago

Question

=+ Is the information presented in an objective manner?

Answered: 1 week ago