A domestic firm may decide to sign an agreement for the production of its goods by an established foreign manufacturer.Such private-label manufacturing by a foreign company is known as which of the following?

Question

Quizplus · Accepted Answer

Contract manufacturing, also known as outsourcing or private-label manufacturing, refers to the process in which a company hires a foreign manufacturer to produce its goods under its own brand name or label. The foreign manufacturer produces the product according to the specifications and requirements provided by the domestic firm.

A Domestic Firm May Decide to Sign an Agreement for the Production