In which of the following modes of licensing does the firm hire local producers to produce the product, giving the company less control over the manufacturing process?
A) management contracts
B) direct investment
C) joint venture production
D) franchising
E) contract manufacturing

Question

Quizplus · Accepted Answer

Contract manufacturing is a mode of licensing where a firm hires local producers to manufacture their product under certain conditions. The company has less control over the manufacturing process in this mode of licensing because they do not directly own the production facilities.

In Which of the Following Modes of Licensing Does the Firm