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

Question

Quizplus · Accepted Answer

Contract manufacturing refers to outsourcing the production of goods to a third-party manufacturer, often located in a different country, rather than producing them in-house. In this scenario, Tool Trade is using qualified Chinese manufacturers to produce their products, which falls under the definition of contract manufacturing.

When Tool Trade,an American Company,uses Qualified Chinese Manufacturers to Produce