Sony, Panasonic, and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire Canadian companies to produce electronics for them. The Japanese companies will handle the marketing of the products. What are the Japanese electronics companies using?
A)contract manufacturing
B)direct investment
C)franchising
D)direct exporting

Question

Quizplus · Accepted Answer

The Japanese electronics companies are using contract manufacturing, which is the process of hiring an external company to manufacture products based on the specifications provided by the hiring company. In this case, the Japanese companies are outsourcing the manufacturing to Canadian companies, while still handling the marketing themselves.

Sony, Panasonic, and Other Japanese Manufacturers That Build Products to Customer