Types of Manufacturing Relationships in International Business

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ProsperousAntigorite1436
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Joint ventures involve majority ownership by the international firm to control the venture.

False

Management contracts in manufacturing involve production of goods by the mother company.

False

Wholly-owned plants in foreign countries do not require any local ownership.

False

Exporting as a strategy involves setting up physical operations in the foreign markets.

False

Contract manufacturing often involves a local firm manufacturing products for a foreign market under a contract with an international company.

True

Management contracts in manufacturing are mainly focused on exporting goods directly to foreign markets.

False

Exporting allows a company to enter foreign markets with a minimum change in product lines, company organization, investment or company vision.

True

One of the advantages of exporting is reducing domestic competitiveness.

False

Exporting helps in stabilizing seasonal market fluctuations.

True

Exporting does not offer any potential for corporate expansion.

False

Exporting always results in increased administrative costs.

False

Exporting requires companies to wait longer for payments compared to selling domestically.

True

Learn about different types of manufacturer relationships between foreign mother companies and local firms, such as assembly plant and contract manufacturing. Explore how international subcontracting and EPZs work in the global market.

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