Term:
International subcontracting
Definition:

International subcontracting occurs when one firm, the prime manufacturer or contractor (“principal”), contracts with another firm, the subcontractor or “supplier”, for a given production cycle, one or more aspects of production design, processing or manufacture, or construction or maintenance work.

Domain:
Finance
Source:
OECD, 2005, Measuring Globalisation: OECD Handbook on Economic Globalisation Indicators, OECD, Paris - Glossary
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