A management agreement allows a manufacturer-exporter to manage a foreign company or a division within the company.

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A management agreement is a contract between a parent company and a subsidiary, or between two separate companies, which allows the parent company to manage the subsidiary or a division within the subsidiary. This arrangement is commonly used in international business where a manufacturer-exporter wants to control operations in a foreign country without setting up a separate legal entity or acquiring ownership in an existing business.

A Management Agreement Allows a Manufacturer-Exporter to Manage a Foreign