Final answer:
The executives of Swatch Group and Canon would likely retain manufacturing in their home country to maintain quality and control, despite the cost-saving benefits of outsourcing and offshoring. These latter practices are used by companies to reduce expenses, but can lead to ethical concerns related to working conditions abroad.
Step-by-step explanation:
The chief executives of Swiss Swatch Group and Japanese Canon would most likely choose to retain a majority, if not all, of the manufacturing in their home country. This decision would be influenced by various strategic factors such as maintaining control over the manufacturing processes, ensuring product quality, and preserving jobs within the home country. However, due to the high costs of labor in developed countries, some companies resort to outsourcing or offshoring to save on costs.
Outsourcing involves hiring an outside firm to conduct tasks previously performed internally, while offshoring is the relocation of a company's operations to another country to access cheaper labor markets. Trade agreements such as NAFTA and globalization trends have made these options attractive for many multinational corporations striving to reduce expenses and improve profit margins. This often leads to the establishment of global assembly lines, with different parts of the product production and support processes being distributed across the globe.
Despite the potential economic benefits of outsourcing and offshoring, including those related to call centers and back-office functions, companies may encounter criticism over working conditions in overseas factories, known as sweatshops. This consideration could influence corporate executives to keep manufacturing closer to home, attempting to balance cost savings with corporate social responsibility and public image concerns.