The kind of joint venture in which company signs agreement with foreign producers to provide services or manufacture goods is classified as?
Correct answer: B. contract manufacturing
- A. investment ownership
- B. contract manufacturing
- C. joint ownership
- D. management contracting
Explanation
Contract manufacturing occurs when a company hires foreign producers to manufacture goods under an agreement, while the company generally retains marketing control. Management contracting instead involves supplying managerial expertise to operate another firm's business.
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