Identify the pros and cons of economic interdependence. Apple has chosen to have the components for the iPhone manufactured by more than 30 companies around the world, as opposed to producing everything itself. Address the three basic economic questions:
- How is this decision likely to change how the iPhone is to be produced? How is this decision likely to change for whom the goods are produced? For example, how will this decision affect the payments to labor and capital?
- Does the fact that Apple outsources so much of its labor affect your decision to buy Apple products?
- For U.S. consumers and producers, what are the pros and cons associated with Apple's decisions to outsource production?