Question

nike has designed a new shoe, and subcontracts the production to another firm. this practice is known as

a. direct foreign investment
b. crowdfunding
c. internal production
d. contract manufacturing
e. franchising

Explanation:

Direct foreign investment is about investing in a foreign - based business. Crowdfunding is raising funds from a large number of people. Internal production means producing within the company. Franchising is about a business model where one party (franchisor) grants rights to another (franchisee). Contract manufacturing is when a company designs a product and subcontracts its production to another firm, which is the case here with Nike.

Answer:

D. contract manufacturing