Question

Using contract manufacturing as a strategy to reach global markets gives firms the advantage of

Answer 1

Answer: C. reduced risks

Explanation:

Contract manufacturing refers to when a company outsources the production of certain goods or components that it normally produces to another company and in terms to global markets, to another company in another country ad this is usually done to reduce costs as the company that the production was outsourced to can produce at a cheaper price.

By using this method to reach global markets, the contracting company would be able to reduce financial risk which is the risk that a project will not payback because the costs associated will become less therefore the chances of the project paying back will increase simply because it only has to cover a lesser cost of production.