A firm that has a lot of "management know-how," but expects production problems in a foreign market, might be wise to use management contracting.

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Management contracting involves a firm hiring a third-party company or individual to manage its operations in a foreign market. This can be a wise choice if the firm has expertise in management but expects production problems in the foreign market. The management contractor can provide the necessary skills and experience to overcome these challenges and ensure successful operations.

A Firm That Has a Lot of "Management Know-How," but Expects