Contract manufacturing can take three forms:
1. Getting produced certain parts of final products: In case of automobiles or purses or shoes some parts are got manufactured from foreign countries which are used for the production of final products later.
2. Assembly of components into final products: In case of electronic items, different parts are assembled at that country where they are to be sold.
3. Complete manufacture of the products: In some cases, commodities like garments a contract is given for complete manufacturing and products are sold in brand name of foreign companies.