Question

The global technology company Motorola received negative publicity related to allegations that its workforce at a ________ plant in China was overworking the employees who worked as many as 15 hours a day in poor factory conditions. Motorola and other companies that participate in China’s manufacturing industry have hired inspectors to ensure the contracted agreements are being followed and worker safety and rights are protected.

Answer 1

Answer:

The correct answer is Contract manufacturing.

Explanation:

Contract manufacturing is a business model in which a company approaches a manufacturer with a design and requests a contract to produce a certain number of units at a cost. The cost of the contract manufacturer is based on work, material costs and the difficulty of the process, while the company focuses on design, marketing and sales. In general, the companies they hire will request quotes from several manufacturers per contract in a bidding process before finally choosing one.