Next year, in order to cut both time and cost in getting new styles to global markets, Rhett plans to ________ a few of his designer lines. Rhett will send his designs to manufacturers in India, Bangladesh, and Turkey who will produce the eyeglasses in facilities in their respective countries. This will not only reduce the cost of labor, it will help Rhett reach regional markets in a timely manner.
A) license
B) contract manufacture
C) franchise
D) subsidize

Question

Quizplus · Accepted Answer

Contract manufacturing is when a foreign manufacturer produces and private-labels goods for a domestic company. Contract manufacturing enables a company to experiment in a new market without heavy start-up costs. It also can significantly reduce the cost of labor.

Next Year, in Order to Cut Both Time and Cost