Question

Which of the following is/are the advantage(s) of contract manufacturing?

• A. There is hardly any investment risk involved in the foreign countries.
• B. It helps international firms in getting products manufactured or assembled at lower costs.
• C. Local producers in foreign countries also gain from contract manufacturing.
• D. All of the above

Answer 1

The correct option is D All of the above

A contract manufacturing company may offer significant cost advantages over an organization's internal production facilities. Because contractmanufacturing companies will specialize in developing certain kinds of products, it can start a high-volume production line while implementing all of its' cost-saving measures.