The primary motive in the contract manufacturing strategy is ________.
A)utilizing inexpensive overseas labor
B)obtaining rights to patented technology
C)sharing managerial expertise
D)sharing financial resources

Question

Quizplus · Accepted Answer

The primary motive in the contract manufacturing strategy is to utilize inexpensive overseas labor, which is often the main reason why companies outsource their production to overseas contract manufacturers. This allows them to reduce labor costs and improve profit margins. While obtaining rights to patented technology, sharing managerial expertise, and sharing financial resources are potential benefits of contract manufacturing, they are not the primary motive for pursuing this strategy.

The Primary Motive in the Contract Manufacturing Strategy Is ________