Question

When Sears decided to enter Mexico with its retail facilities. Its strategy was to engage in contractual agreements with qualified local manufacturers to produce products that Sears was merchandising and selling in its new Mexican retailing facilities. Sears ultimately desired to buy out these producers and take over their operations. This is an example of __________ for entering a foreign market.

Answer 1

Answer: Contract manufacturing

Step-by-step explanation:

The contract manufacturing is the process of production of various types of products and the services in an organization on the contractual basis and it is one of the form of outsourcing process.

When the contract manufacturer perform the packaging operation of the products in an organization then, it is known as the contract packager.

The contract manufacturing is also sometimes known as the private label manufacturing because some manufacturer provide the products and the services according to their own design and the specification.

Therefore, contract manufacturing is one of the example that best illustrate the given scenario for entering in the foreign market.