What is the term for entering foreign markets by working with manufacturers who produce a product?

The term for entering foreign markets by collaborating with manufacturers who produce a product is known as contract manufacturing. This approach allows a company to expand its market presence without the need for significant capital investment in production facilities or equipment abroad. By outsourcing production to a local manufacturer, a company can leverage the manufacturer's existing expertise, infrastructure, and knowledge of local market conditions.

Contract manufacturing also offers flexibility, allowing firms to scale production up or down based on demand without the risks associated with owning manufacturing plants in foreign countries. This model is particularly useful in situations where companies are seeking to quickly enter a new market or when they want to test the viability of a product in that market with reduced financial risks.

The other options describe different methods of market entry or partnerships. Licensing involves giving a foreign company the rights to produce a product in exchange for royalties. Management contracting refers to an arrangement where one company provides managerial expertise to another company, often in a different country. Joint venturing involves creating a new entity with another firm, sharing risks, resources, and profits. Each of these approaches has its own distinct characteristics and strategic implications, but they do not specifically describe the act of outsourcing production to local manufacturers as contract manufacturing does.