You are CEO of an electronics firm with two production facilities in the United States. Your top management team has been considering an outsourcing option that will move all production to China and cut costs by about one-third. What do you do and why? Explain in detail.
A. Move the production. You have already cut production costs as much as possible. If lower costs are available abroad, you must either outsource or place your firm at a competitive disadvantage.
B. Do not move the production. Most of your customers are located in the U.S., so it is not fair to your workers to relocate the jobs.
C. Given the controversial and complex nature of the decision, close one of the production facilities and outsource only that part of the production.