When a foreign firm contracts with a local firm in the host market to produce a product, it is referred to as:

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Contract manufacturing refers to a situation where a foreign firm outsources the production of a product to a local firm in the host market. The foreign firm does not own the production facilities or have control over the production process, but rather relies on the expertise and resources of the local firm. This is often done when the foreign firm wants to take advantage of lower labor costs or production efficiencies in the host market.

When a Foreign Firm Contracts with a Local Firm in the Host