there has been an increasing trend towards outsourcing manufacturing from the us in the tennis shoe manufacturing industry some companies such as new balance still manufacture some portion of their products in the us despite the opportunity of cheaper o

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There has been an increasing trend towards outsourcing manufacturing from the US. In the tennis shoe manufacturing industry, some companies such as New Balance still manufacture some portion of their products in the US despite the opportunity of cheaper offshore manufacturing alternative.

Suppose the technology in production of tennis shoe is such that labor and capital are substitute.

How does technology affect the production cost of New Balance and its ability to stay competitive in a global market?

What is the likely impact of technological advancement on the relationship between labor and capital (equipment) as factors of production?

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