Contract manufacturing is a low cost way for GAP to outsource the production of its clothing designs.
Contract manufacturing involves the production of private-label goods by a foreign company to which a domestic company then attaches its brand name or trademark.

Question

Quizplus · Accepted Answer

Contract manufacturing is a process of outsourcing the manufacturing of a company's products to a third-party. In this case, GAP can outsource the production of its clothing designs to a foreign company, which will then produce the goods under GAP's brand name or trademark. This helps the company reduce costs and increase efficiency. Therefore, the statement is true.

Contract Manufacturing Is a Low Cost Way for GAP to Outsource