Description
You are the international manager of a US 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 of this computer. Your CEO has asked you to formulate a recommendation for how to expand into western Europe. Your options are (a) to export from the US, (b) to license a European firm to manufacture and market the computer in Europe, and (c) 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.
Explanation & Answer
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Recommendation for How to Expand into Western Europe
When a business seeks to invest in foreign countries, there are various avenues to exploit,
and the selection of an appropriate one depends on the nature of the business, and the type of
market the business is currently a part of, and that it is expanding to. The available options for
the business include; exporting the products to the target destination, licensing the technology to
the resident companies, and set up shop in the new country. In this case, the Unite...
