Scenario $8\mathrm{.}1.$

Logitech is a computer peripherals company that was founded in Switzerland in $1981.$ From the outset, the founders realized they would need to expand internationally if they wanted to compete in the market. Soon it had offices and$/$or factories in Switzerland, Taiwan, China, the United States, and Ireland. Its corporate headquarters is in Silicon Valley, but it maintains a factory in China. Eight years after it was founded, Logitech had captured $30$ percent of the market share in the computer peripherals industry.

Refer to Scenario $8\mathrm{.}1.$ Logitech has many of its products built in China using third parties. However, it has also built its own factories to protect some of its manufacturing trade secrets$.$ Logitech uses a combination of $\_\_\_\_\_\_\_$ and $\_\_\_\_\_\_\_$ when manufacturing products.

offshoring; joint venture

strategic alliance; outsourcing

contract manufacturing; direct ownership

direct ownership; licensing

contract manufacturing; licensing

Assessment question