Many companies outsourced their manufacturing activities to Foxconn due to its low labor costs. Does Foxconn's shift to automation make it likely that some of those companies will reconsider outsourcing in favor of shifting to automation? What are some reasons for staying with Foxconn

Yes, shifting of Foxconn to Automation will make the manufacturing units to think whether to stay with Foxconn or shift to a new service provider. The main reasons are as follows -

a) Shifting of Foxconn to automation will make the manufacturing process costly

b) The mechanism of shifting will reduce the production rate

c) The manufacturing process will make the firm to be more system dependent and thus increase the losses specially during break down

Explanation:

Yes, shifting of Foxconn to Automation will make the manufacturing units to think whether to stay with Foxconn or shift to a new service provider. The main reasons are as follows -

a) Shifting of Foxconn to automation will make the manufacturing process costly

b) The mechanism of shifting will reduce the production rate

c) The manufacturing process will make the firm to be more system dependent and thus increase the losses specially during break down