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(a) Merits, , There is almost no investment risk involved as, there is hardly any investment in the foreign, country., , Contract manufacturing gives the advantage to, international firms to get the goods, manufactured at a lower cost., , Local manufacturers also get the benefits to be, involved with international business and start, exporting., , (b) Demerits, , Local firms might not follow and provide the, same quality standards. causing problems to, international rums., , The local manufacturer loses his control as, goods are manufactured strictly according to the, terms and specifications of international firms., The local manufacturer is not free to sell the, goods according to his will., , Ill. Licensing and Franchising:, , Permitting another party in foreign country to, produce and sell goods under their trademarks,, patents or copy right in lieu of a fee called royalty, , le tarmad ac linancingn \Alhan thara ice militia!