Contract Manufacturing
According to Contract Manufacturing, every well-known company in a nation accepts responsibility for promoting the goods and services created by a business in another nation. Here, the company is specialised in the manufacturing process but lacks marketing skills, whereas the other company, due to its established reputation, is capable of selling those items and services. Offering these items and services is not the primary business of these organisations, but they do it for the benefit of their name and reputation, as well as to provide high-quality products at a low cost to their customers.
Contract manufacturing is a type of international business, in which a firm enters into a contract with another firm in a foreign country to manufacture certain components or goods as per its specifications.
Multinational firms, like Maybelline, Loreal, Levis, and others use contract manufacturing to have their products or component parts produced in developing nations. Contract manufacturing is also known as international outsourcing.