Reread the Caterpillar case presented in the chapter. Komatsu reverse engineered Caterpillar's products during the late 1970s and early 1980s. Komatsu's management used this information to design its products to compete effectively against Caterpillar. During the late 1980s, Caterpillar used this same method of reverse-engineering to redesign its products and manufacturing processes.
REQUIRED
A. Does reverse-engineering create an ethical problem? In other words, is reverse-engineering a form of business espionage?
B. What are the social costs and benefits from reverse-engineering a competitor's product?
C. When companies redesign their products and manufacturing processes for cost efficiency, they often reduce their reliance on manufacturing labour. What are the social costs and benefits of this practice?