The Firm That Makes a Key Component of the IPhone

question 29

Multiple Choice

The firm that makes a key component of the iPhone outsources production of it to India and Taiwan because

• A) although the firm did not want to do this, Apple Computer insisted.
• B) economies of scale neglect the human costs of capital transitions.
• C) the part can be made cheaply, and the firm spends the savings on research and development.
• D) it seeks to eliminate jobs in its home state.

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Definitions:

Stereotypes

Oversimplified, generalized beliefs about a group of people that do not account for individual differences.

Cooperate

To work or act together towards a common goal or benefit.

Sleeper Effect

A delayed increase in the impact of a message that occurs when an initially discounted message becomes effective, as we forget its source or its source becomes less important over time.

Internal Attribution

The inference that a person's behavior is due to personal factors like character, motive, or belief.