Using contract manufacturing as a strategy to reach global markets offers firms the advantage of:
A) expert and experienced laborers.
B) reduced financial risks.
C) increased volatility.
D) currency stability.

Question

Quizplus · Accepted Answer

Contract manufacturing allows a firm to shift production and financial risks to the external manufacturer, reducing its own financial risks. However, contract manufacturing does not necessarily imply expert or experienced laborers, increased volatility, or currency stability.

Using Contract Manufacturing as a Strategy to Reach Global Markets