Business Studies, asked by gauravsaini7822, 10 months ago

Write short note on contract manufacturing.

Answers

Answered by dhanyaLingam
0
It is a manufacture that contracts with frim for components or products.it is a form of outscoring
Answered by sushiladevi4418
1

Answer:

Contract manufacturing:

It is a form of manufacturing where a firm gives contract of making a product to a manufacturing unit of a different firm. This form of manufacturing is more common in developed countries. The advantage is that the company saves costs of Labour, materials and other costs related to manufacturing.

Contract manufacturing does have disadvantages for the company, the foreign employees, and the company's domestic economy. Since 2001, the United States has outsourced millions of manufacturing jobs, which has resulted in a great deal of job displacement for many Americans, who may never find a replacement job with similar wages and benefits.

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