Delta Galil Industries Ltd. is a clothing manufacturer based in Israel. It is responsible for making clothing sold under the Playtex brand, Donna Karan/DKNY brand, Hugo Boss brand, and Calvin Klein brand. What occurs when one company manufactures clothing that is sold using another company's brand?
A)countertrading
B)joint venturing
C)direct investing
D)contract manufacturing

Question

Quizplus · Accepted Answer

This is known as contract manufacturing, where one company produces goods under the label or brand of another company. This arrangement allows the brand-owning company to focus on design and marketing, while the manufacturing company handles production.