Balance Athletic Shoes,Inc.claimed its shoes were "made in the USA" when actually the shoe soles and most of the uppers were made in China.The shoes were assembled in the United States.The Federal Trade Commission did not think that assembling the shoes in the United States was enough to use the "made in the USA" logo.New Balance actually used

Question

Quizplus · Accepted Answer

The situation described in the question is an example of contract manufacturing. New Balance contracted with a manufacturer in China to make the shoe soles and uppers, then assembled the shoes in the United States. Despite being assembled in the US, the shoes were not considered "made in the USA" by the Federal Trade Commission because the majority of the production occurred outside the country.