By : Juanita Suarez Caypa. What is Contract Manufacturing ?. Is contractual arragement by a company with foreign organizations to perfom services and tasks on his behalf. Advantages. Quicker acces to markets. Labor Cost Advantages. Savings via taxation.
Juanita Suarez Caypa
Is contractual arragementby a companywithforeignorganizationstoperfomservices and tasksonhisbehalf.
LowerPolitical and economicrisk
Risk of futurecompetition
Issues of quality and productionstandards
The intermediary entry modes to a foreign markets
Advantageous in situation where firm possess competitive advantage
Unable to exploit it at home country.
In any case thistype of marketentrymode as theterm denotes focusesprimarilyonproduction and not marketing