One of the ways of building strategic flexibility and reducing economic exposure involves contracting out manufacturing.This kind of strategy may be suited for low-value-added manufacturing than high-value-added manufacturing.

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One way of building strategic flexibility and reducing economic exposure involves contracting out manufacturing.However,this kind of strategy may work only for low-value-added manufacturing (e.g. ,textiles),in which the individual manufacturers have few if any firm-specific skills that contribute to the value of the product.It may be less appropriate for high-value-added manufacturing.

One of the Ways of Building Strategic Flexibility and Reducing