Sears opened up department stores in Mexico and Spain,where it found qualified local manufacturers to produce many of the product it sells.This type of joint venture is known as ________.

Question

Quizplus · Accepted Answer

The joint venture described in the scenario, where Sears found qualified local manufacturers to produce its products, is an example of contract manufacturing. Contract manufacturing involves outsourcing production to a third-party manufacturer. Sears did not own a stake in the manufacturing companies or have any licensing agreements in this scenario, making options A and B incorrect. Management contracting involves a company hiring a third-party to manage a specific aspect of its business, which is not the case here, making option C incorrect. Indirect exporting involves a company utilizing intermediaries to export products to foreign markets, which is not relevant to this scenario, making option D incorrect.

Sears Opened Up Department Stores in Mexico and Spain,where It