Question

_______________ is a cost-effective way that many companies outsource the production of goods, such as clothing, shoes, and cell phones. The domestic firm contracts with a foreign company to produce and private-label the goods, because the price is much cheaper than the domestic firm could produce in its' home market.

Franchising
Foreign direct investment
Contract manufacturing
Exporting

Answer 1

Contract manufacturing

Step-by-step explanation:

A contract manufacturer is a company for parts or product lines that contracts with a corporation. It's an subcontracting type.

Businesses can make profit by collaborating with a supplier who already understands the production process, may have specialized in the suitable machinery and operates comparable but non-competing products in their plant in order to benefit from efficiency gains.