. If current trends continue, China may be the world’s largest economy by
Discuss the possible implications of such a development for
a. the world trading system
b. the world monetary system
c. the business strategy of today’s European and U.S.-based global
corporations
d. global commodity prices
Reread the Management Focus “Boeing’s Global Production
System” and answer the following questions:
a. What are the benefits to Boeing of outsourcing manufacturing of
components of the Boeing 787 to firms based in other countries?
b. What are the potential costs and risks to Boeing of outsourcing?
c. In addition to foreign subcontractors and Boeing, who else benefits
from Boeing’s decision to outsource component part manufacturing
assembly to other nations? Who are the potential losers?
d. If Boeing’s management decided to keep all production in America,
what do you think the effect would be on the company, its employees,
and the communities that depend on it?
e. On balance, do you think that the kind of outsourcing undertaken by
Boeing is a good thing or a bad thing for the American economy?
Explain your reasoning.
