Boeing Outsources Nearly 30% of the Production of Its Aircraft

question 72

Multiple Choice

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.

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