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 U.S.companies to produce electronics for them.The Japanese companies will handle the marketing of the products.Japanese electronics companies are using:
A) contract manufacturing
B) direct investment
C) franchising
D) direct exporting
E) countertrading

Question

Quizplus · Accepted Answer

Contract manufacturing takes place when a foreign company produces goods to specification set by a domestic company,with the domestic firm's brand name affixed to the goods.In this case the "domestic" companies are in Japan selling in a foreign market for them--the United States.

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