1. Identify specific concepts in the case found in this module, and discuss their relevance to the problems facing the company.

2. Considering all of the problems incurred in China and the immense effort and capital needed to start up the Mexico operation, would it have been a better idea for Balagny Clothing to keep its domestic operations? Why or why not?

This mini-case provides an opportunity for students to examine a situation in which a company has closed its domestic manufacturing operations and outsourced the production to companies in China. A number of issues have arisen in conjunction with this decision to offshore production.