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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Definitions:

Cervical Vertebrae

The vertebrae located in the neck region, forming the upper part of the spinal column.

Intervertebral Discs

The fibrocartilaginous pads situated between the vertebrae of the spine, providing cushioning and facilitating movement.

Fibrocartilage

A type of tough and inflexible cartilage that contains fibrous bundles of collagen, such as that found in the intervertebral disks and at the insertions of ligaments and tendons.

Atlas And Axis

The first two cervical vertebrae that support the skull and enable head movements such as nodding and rotation.