Contract Manufacturing and Service Provision: Firms often prefers to outsource production and the main form of outsourcing in many industries is a contract manufacturing agreement. Outsourcing allows a firm to concentrate on enhancing products by focusing on R&D, marketing and design while enjoying the cost advantages brought in by the expertise of contract manufacturers (CM). For decades, many of the MNCs outsource production in different countries in order to benefit the labor cost advantages, as well as the logistical proximity. The best example is specified as Nike that distinguishes design, product development, and marketing from shoe and clothing manufacturing geographically. The correct answer is D.