Why do people say it's cheaper to outsource production in components of most products

W

willyoulovemetonight

New member
even cars like GM? Why do GPS makers GM Ford etc. etc. buy the components chips, engines, etc. etc. for their products and then assemble them? Even some of these products have American made components and they still outsource a lot of production on the components WHY? Wouldn't it be cheaper to manufacture it all yourself since nobody would be making a profit off you?
 
Not always. If you manufacture everything yourself, you must set up separate production and engineering facilities for everything. Companies who already specialize in niche items can produce it cheaper.
 
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