The local manufacturer loses control over the production process in the case of contract manufacturing.

True

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False

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Solution

The correct option is A
True

True. The local manufacturer loses control over the production process as the goods are produced strictly according to the specifications mentioned.

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Similar questions

Differentiate between contract manufacturing and setting up wholly owned production subsidiary abroad.

Under contract manufacturing, the profit margin for the local firm is much less than that of the international firm.

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