In global marketing, what entry strategy involves a home company contracting with a foreign manufacturer to produce products or perform services?
ALicensing
BExporting
CContract Manufacturing
DJoint Venture
Explanation
* Contract Manufacturing involves contracting with local manufacturers in foreign markets to produce items or components.
* Advantage: Faster market entry with reduced capital investment and lower labor costs.
* Disadvantage: Reduced control over manufacturing processes and potential loss of intellectual property.
Exam Relevance
- Topic: Global Marketing
- Subtopic: International Entry Modes

No Comments