Global Supply Chains & Offshoring
What is the term for moving manufacturing to another country to reduce costs?
Offshoring
What does reshoring mean?
Moving manufacturing back to the U.S.
True or False: Manufacturing costs are usually lower in the U.S. than in Asia.
False
What is one major challenge companies face when reshoring manufacturing to the U.S.?
Skilled labor shortage
In what state is Intel building two new semiconductor fabs?
Arizona
Name one reason companies offshore production.
Cheaper labor / lax regulations / cheaper costs
What does nearshoring mean?
Moving manufacturing to nearby countries like Mexico or Canada
What 2022 law provides billions of dollars to support semiconductor manufacturing in the U.S.?
CHIPS and Science Act
What technology is often used to reduce labor costs in U.S. factories?
Automation / robotics / AI
What year did Intel announce this reshoring initiative?
2021
What event exposed major weaknesses in global supply chains?
COVID-19 pandemic
How does nearshoring help reduce supply chain risks?
Shorter shipping times, fewer delays, and regional trade benefits
Why might consumers pay higher prices for reshored products?
Higher labor/environmental costs in the U.S
True or False: Reshoring guarantees large numbers of new jobs.
False
How much is Intel investing in its Arizona expansion project?
$20 billion
Give one example of a product that became hard to get in the U.S. during COVID-19 due to supply chain issues.
Ventilators, PPE, semiconductors, etc.
What industries are often prioritized for reshoring?
Healthcare, defense, technology
Name one country often involved in nearshoring partnerships with the U.S.
Mexico or Canada
Name one policy or strategy that could help overcome reshoring challenges.
Job training, apprenticeships, tax incentives, etc.
What act provides $52 billion to support U.S. semiconductor manufacturing?
CHIPS and Science Act
Explain how global supply chain disruptions can impact both consumers and businesses.
Open response — expected: shortages, price increases, delays, production stops, etc.
Explain the difference between reshoring and nearshoring, and give one benefit of each.
Open Response - Reshoring keeps products high-quality and ideas safe, while nearshoring is close by and cheaper to ship
Explain one economic cost and one benefit of reshoring manufacturing.
Open response - Reshoring can cost more, but it helps companies keep products high-quality and protect their ideas.
Explain how automation creates both opportunities and challenges in reshoring manufacturing.
Open Response - Using automation can speed up and cut costs in reshoring, but it can also cost jobs and require big investments.
Explain why Intel’s project is strategically important to U.S. national security.
Open response — expected: reducing dependence on Asia, securing chip supply, strengthening infrastructure, etc.