License an European Firm to Manufacture and Market Questions

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wraal37

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Description

You are the international manager of a U.S. business that has just developed a revolutionary new personal computer that can perform the same functions as existing PCs but costs only half as much to manufacture. Several patents protect the unique design for this computer. Your CEO has asked you to formulate a recommendation for how to expand in Western Europe. Your options are:

  1. to export from the United States
  2. to license a European firm to manufacture and market the computer in Europe
  3. to set up a wholly owned subsidiary in Europe

Evaluate the pros and cons of each alternative and suggest a course of action to your CEO.


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Explanation & Answer

Attached.

Running head: INTERNATIONAL BUSINESS

International Business
Institutional Affiliation
Date

1

INTERNATIONAL BUSINESS

2

1. To export from the United States
Exporting products increases the sales of the product simply because you will be getting the
best products with the improved technology needed. Another advantage of exporting the
personal computers is that in case there are unfavourable economic conditions, the...


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