Honda Canada produces its vehicles to standards and specifications set by Honda's Japanese headquarters. What is this also known as?
A)importing
B)joint venturing
C)direct investing
D)contract manufacturing

Question

Quizplus · Accepted Answer

Contract manufacturing refers to a situation where a company outsources the production of its products to a third-party manufacturer who produces the products under the company's brand name, specifications, and standards. In this case, Honda Canada produces its vehicles to the standards and specifications set by Honda's Japanese headquarters, which is an example of contract manufacturing.

Honda Canada Produces Its Vehicles to Standards and Specifications Set