The global sourcing arrangement that is one in which there are no production facilities is known as what?

The arrangement described in the question refers to a scenario where a company outsources production to an external entity, implying that the primary business does not own or operate any production facilities in the foreign market itself. In this context, the correct answer illustrates the use of an overseas independent contractor. This type of contractor operates independently and is not controlled or owned by the company that utilizes its services for manufacturing or production tasks.

In an overseas independent contractor arrangement, the primary firm leverages the contractor's infrastructure and resources without incurring the costs associated with establishing their own production facilities. This allows for greater flexibility, access to local expertise, and potential cost savings.

While other options involve more integrated forms of business operations, such as joint ventures and wholly owned subsidiaries, they require the company to maintain a degree of control and ownership, which does not align with the concept of having no production facilities. Hence, the notion of utilizing independent contractors effectively captures the essence of outsourcing without the burden of direct operational involvement in production.