Contract manufacturing gives the company less control over the manufacturing process and risks loss of potential profits on manufacturing.However,it offers a chance to start faster,with the opportunity to form a partnership or buy out the local manufacturer later.

Question

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Contract manufacturing generally involves outsourcing the production process to a third-party manufacturer. While it can result in less control over the manufacturing process and a potential loss of profits on manufacturing, it also allows companies to start faster by leveraging the existing capabilities of the local manufacturer. This can provide a chance to form a partnership or even buy out the local manufacturer later, leading to greater control over the manufacturing process in the long run.

Contract Manufacturing Gives the Company Less Control Over the Manufacturing