When Tool Trade, an American company, uses qualified Brazilian manufacturers to produce many of the products it sells to retailers in South America, Tool Trade is using contract manufacturing.

Question

Quizplus · Accepted Answer

This is correct. Contract manufacturing refers to outsourcing the manufacturing process to a third-party company, which is often located in a different country. In this case, Tool Trade is using Brazilian manufacturers to produce their products, which qualifies as contract manufacturing.

When Tool Trade, an American Company, Uses Qualified Brazilian Manufacturers