Scenario 8.1 Use the Following to Answer the Questions

question 62

Multiple Choice

Scenario 8.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of the four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products.
However, for all the accessories, apparel, and other riding gear, Harley-Davidson engages other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America."
-Refer to Scenario 8.1. Harley-Davidson's practice of having establishments in China produce apparel items with the Harley logo is an example of .

• A) contract manufacturing
• B) globalization
• C) direct ownership
• D) joint venture
• E) exporting

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Definitions:

Creditors

Entities (people or institutions) to whom money is owed by the business for goods or services that have been delivered or used but not yet paid for.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interest.

Cash Flow

The entire monetary cycle within and outside a corporation, importantly determining its instant financial stability.

Assets

Economic resources owned by a business or individual that are expected to provide future benefits.