Nike will often enter a foreign market through an agreement with a foreign firm.The agreement calls for the foreign firm to manufacture products to Nike's standards and attach the Nike name and trademark.This technique allows Nike to experiment in a new market without incurring the large start-up costs involved with building their own production facilities.This is an example of:

Question

Quizplus · Accepted Answer

The described technique is known as contract manufacturing, where Nike enters into an agreement with a foreign firm to manufacture products to Nike's standards and attach the Nike name and trademark. This allows Nike to experiment in a new market without incurring the large start-up costs involved with building their own production facilities.

Nike Will Often Enter a Foreign Market Through an Agreement