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

This statement is true.

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This statement is partially true.

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This statement is false.

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The local firm is at liberty to sell the manufactured goods in the market and the goods have to be sold to the international company at prices mentioned in the contract.

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Solution

The correct option is A
This statement is true.

True. The local firm is not at liberty to sell the manufactured goods in the market and the goods have to be sold to the international company at prices mentioned in the contract. Hence, the profit margin for the local firm is much less than that of the international firm.

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