Boeing outsources nearly 30% of the production of its aircraft to foreign suppliers.What could be the rationale behind such a move?
A)It is difficult for firms like Boeing to achieve the optimal dispersion of their productive activities to locations around the globe.
B)Outsourcing to foreign suppliers is in accordance with diplomatic treaties signed with other countries.
C)Foreign suppliers are not governed by strict regulations followed by companies in the U.S.and Boeing also saves on tax payments.
D)A global web of suppliers yields a better final product,which enhances the chances of Boeing winning a greater share of total orders for aircraft.

Question

Quizplus · Accepted Answer

Part of Boeing's rationale for outsourcing so much production to foreign suppliers is that these suppliers are the best in the world at their particular activity.A global web of suppliers yields a better final product,which enhances the chances of Boeing winning a greater share of total orders for aircraft than its global rivals.

Boeing Outsources Nearly 30% of the Production of Its Aircraft