Scenario 9.1 Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America. "
Refer to Scenario 9.1. Harley-Davidson's practice of having manufacturers in China produce apparel items with the Harley logo is an example of
A) contract manufacturing
B) globalization
C) direct ownership
D) joint venture
E) exporting

Question

Quizplus · Accepted Answer

Harley-Davidson's practice of having manufacturers in China produce apparel items with the Harley logo is an example of contract manufacturing, as they are outsourcing the production of their branded accessories to other manufacturers.