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INTERNATIONAL SUBCONTRACTING

Statistics Directorate    
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.

Context:
The output is generally incorporated into the principal’s final products. Subcontracting can also involve services, particularly studies, accounting, engineering, R&D, advertising, computer services or legal advice.

Source Publication:
OECD, 2005, Measuring Globalisation: OECD Handbook on Economic Globalisation Indicators, OECD, Paris - Glossary.

Statistical Theme: Financial statistics

Created on Monday, July 23, 2007