Your group has come up with an innovative product called Ebo

Your group has come up with an innovative product called E-box, which pulls your car history with that of household information systems (phone, emails etc.). In terms of technology and product complexity it would be similar to that of the X-box. You have to make a decision about where to manufacture the product: in the U.S.A. or in another specific country (you decide which country) While making this decision, please examine the notion of trade-offs for such a product, as well as the advantages and disadvantages of outsourcing production to another country.

Solution

I will choose the country which is known for software. India. In India the labor rate is cheaper and government is supportive for foreign investment. In fact the Indian Government is running a campaign named ’Make In India” which offers the foreign company to utilize the resources and invest in India. Government has kept the tax rate and rules and regulation very friendly. Hence I will choose India for manufacturing the software. These are benefits but the disadvantage I will get skilled workers as well

The disadvantage will be that it will take more initial effort to start the production as you have to understand the foreign countries rules and regulation this process will take more time and money. There will be very complexity in starting the production.