It was a pleasure to read your answer. Your answer briefly discusses about the advantages of insourcing. You have cited example from the General Motors’ decision to stop outsourcing. The information was very factual and indeed helpful for understanding the qualities of insourcing and how it can benefit the company by imbibing the company’s values and vision in the products when done in the home environment.
However, I think with a little expert help from the parent company, the outsourcing parties can imbibe the same while working in the foreign environment. In your discussion you have highlighted how the Apple products, though not completely produced in the USA try to show loyalty to the USA values. This is done because, Apple constantly tries to remind its outsourcing partners about the products they want. In the process, the outsourced team of experts creates the developed products, and the parent company does not have to bear the pressure of manufacturing (Hsu, Lin & Weng, 2015). This allows them to focus on proper marketing and other promotional factors which can lead to the growth of the company.
Moreover as you have discussed the labour cost in countries like India and China are lower than that of the USA, the similar applies for the different taxes that the companies have to pay to the American government. This allows major cost cutting for the products which allows the companies to profit more while keeping a pocket friendly price for all the customers including those in America (Liu & Tyagi, 2017). This allows a better development opportunity for the company and also maintains a good buyer-seller relationship with the customers.
Hsu, K. C., Lin, S. J., & Weng, Y. (2015). Do Labor Unions Hinder or Boost International Outsourcing? Evidence from US Manufacturing. The International Trade Journal, 29(2), 142-162.
Liu, Y., & Tyagi, R. K. (2017). Outsourcing to convert fixed costs into variable costs: A competitive analysis. International Journal of Research in Marketing, 34(1), 252-264.