Unlike in joint ventures,in contract manufacturing,_____.
A)a domestic firm need not invest in overseas plants and equipment.
B)a domestic firm buys part of a foreign company.
C)a domestic firm joins with a foreign company to create a new entity.
D)a domestic firm does not agree on management strategies and policies.

Question

Unlike in joint ventures,in contract manufacturing,_____.
A)​a domestic firm need not invest in overseas plants and equipment.
B)a domestic firm buys part of a foreign company.
C)a domestic firm joins with a foreign company to create a new entity.
D)​a domestic firm does not agree on management strategies and policies.

Quizplus · Accepted Answer

In contract manufacturing, a domestic firm contracts with a foreign firm to manufacture their products on their behalf. Therefore, the domestic firm does not need to invest in overseas plants and equipment, unlike in joint ventures where both parties invest in a new entity.

Unlike in Joint Ventures,in Contract Manufacturing,_____