A major drawback to contract manufacturing compared to other forms of international operations is that it usually involves a high level of capital investment.

Question

Quizplus · Accepted Answer

Contract manufacturing does not usually involve a high level of capital investment as the manufacturer's facilities and equipment are typically used. Therefore, contract manufacturing is often considered a cost-effective option for companies to produce their goods without significant upfront investment.

A Major Drawback to Contract Manufacturing Compared to Other Forms