Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?
A) Licensing
B) Contract manufacturing
C) Exporting
D) Importing
E) Direct investment

Question

Quizplus · Accepted Answer

Contract manufacturing involves hiring a foreign firm to produce a specific volume of a company's product according to its specifications. Licensing is the granting of permission by a company to a foreign firm to use its intellectual property for a fee. Exporting involves selling goods or services produced in one country to another country. Importing involves bringing goods or services produced in a foreign country into one's own country. Direct investment involves the establishment of a company-owned production facility in a foreign country.

Which of the Following Describes a Company Hiring a Foreign