Question

EBL Industries _________________ its products in foreign countries, where labor is less expensive and production sites are owned by other companies. This strategy allows EBL Industries to experiment in new markets without incurring the large start-up costs involved with building its own production facilities.

Answer 1

This question is not complete

Complete Question

EBL Industries _________________ its products in foreign countries, where labor is less expensive and production sites are owned by other companies. This strategy allows EBL Industries to experiment in new markets without incurring the large start-up costs involved with building its own production facilities.

Select one:

a. franchises

b. licenses globally

c. pays governments to market

d. contract manufactures

Answer:

d. contract manufactures

Explanation:

Contract manufacturing can be defined as the process whereby a manufacturer A in a particular country or area, enters into a contract with another manufacturer B in a particular area or country or area that have the necessary equipment, manpower to produce the parts or equipment required by Manufacturer A for the production of their own products.

Contract Manufacturing helps to prevent and reduce wastage time money and resources. In contract manufacturing, the labour that is used is less expensive and it allows manufacturing industries to experiment in new markets without accumulating the large start-up costs involved with building its own production facilities.

Answer 2

Answer:

The options for this question are the following:

a. franchises

b. licenses globally

c. pays governments to market

d. contract manufactures

The correct answer is d. contract manufactures.

Explanation:

A contract manufacturer (CM) is a type of manufacturing business that specializes in producing products for a customer, based on specific criteria that is provided by the customer. In most cases, goods that are produced as branded products are created, which means that they are presented to the general public as goods that were manufactured by the customer instead of the contract manufacturer. This approach provides benefits for both parties, with customers saving a large amount of money on production and operational expenses, while the manufacturer enjoys a constant flow of work orders to keep the operation viable. As part of this type of outsourcing agreement, the manufacturer provides the production facilities, equipment, materials and labor necessary to produce a range of products for a customer.