Question

Unlike in joint ventures, in contract manufacturing, _____.

Answer 1

In Contract manufacturing, a foreign company, first produces the good within own private label goods.Then these goods are transported to the domestic companies. These domestic companies then attach their own brand name to these products and then sell these products in domestic markets with their own label.

Answer 2

A joint venture is a business entity created by two or more parties by agreeing to pool their resources together for the purpose of accomplishing a specific objective which may be either a project or any other business activity.
Contract manufacturing involves production of goods by one firm under the label or brand of another firm or company. A contract manufacturer contracts with another company to make certain components or products over a mutually agreed period of time.