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Question: Jolie and Elizabeth run a small firm that designs and makes Southern-style dresses for Southern-style women in Kentucky, USA. Every year they sell 5 to 7 basic styles of dresses that they update 3 times per year, with the changing seasons. All of their production is done in Kentucky, where they live and work, and where 80% of their orders come from. Demand is rapidly growing and their investors are pressuring the ladies to outsource production of their dresses to China, where the dresses can be made more cheaply. Should they? Why or why not? What are the important questions to ask? Using our external readings, help Jolie and Elizabeth address their investors.
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