Business, 14.07.2019 00:00 gildedav001

You are the international manager of a us business that has just invented 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.

Answers: 1

Show answers

Answers

Based on the pros and cons of the various methods of licensing, exporting, and owning a subsidiary, the best course of action would be Licensing a company.

Pros and Cons of exporting

Pros

Cheap to engage in.Significantly increases market base.

Cons

Lack of control over sales process. Need to partner with local partner for issues such as taxes. Pros and Cons of Licensing

Pros

Cheap to engage in.Allows for marketing to be done at no cost to you.

Cons

Lack of control over sales process. Requires delicate maneuvering to maintain relationship with partner. Pros and Cons of subsidiary

Pros

Allows for complete control of sales process. Allows for vision implementation the way the producer prefers.

Cons

Significantly expensive to start up. Expensive to maintain.

The best option would be licensing because the computer is protected by patents which are respected in Western Europe. You can therefore maintain some degree of control over sales while still saving on costs.

Find out more on international trade at link.

Answer from: ryantrajean7

A) Export from the US:

Pros: Little intial cost for the company. Export led growth which is high in return.

Cons:This has problems since we should need a local importer and distributor. We would be dependent on local partners and might not be able to compete effectively.

(B) to license a european firm to manufacture and market the computer in europe.

Pros: Very low cost. We can quickly enter the market. Leave marketing and manufacturing to another firm.

Cons: Again, we lose control over our export market. Dependent on another company. If the relationship breaks down for some reason, it can take the whole European business with it.

C) To set up a wholly owned subsidiary in Europe.

Pros: Can develop the whole company in our own vision. Can apply for and defend patents better. Understand the local market and adapt to it.

Cons: It is very expensive with high costs of investment and operations.

Answer from: Quest

i know right it’s not fair some people are just so rude unlike you your actually trying to get to know people and i think that is very kind

Answer from: Quest

It would be choice c (1040ez)

Other questions on the subject: Business

Business, 21.06.2019 19:20, 2020IRodriguez385

What impact did the economic opportunities in pennsylvania and new york have on virginia? a. virginia planters started to migrate to new york. b. new yorkers began buying up cheap virginia real estate. c. virginians found themselves resorting increasingly to slavery. d. virginians loosened their slave laws to attract more migrants.

Answers: 2

continue

Business, 21.06.2019 20:30, xojade

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? a) compensating managers with stock options, b) financing risky projects with additional debt, c) the threat of hostile takeovers, d) the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions, e) abolishing the security and exchange commission

Answers: 1

continue

Business, 22.06.2019 09:00, nadiarose6345

Consider the scenario below and let us know if you believe lauren smith's actions to be ethical. let us know why or why not. lauren smith is the controller for sports central, a chain of sporting goods stores. she has been asked to recommend a site for a new store. lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. therefore, lauren recommended locating the new store in her uncle’s shopping plaza. in making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. if management decided to go with lauren's uncle's plaza, what additional information would be needed in the financial statements?

Answers: 2

continue

Business, 22.06.2019 23:10, jayjayw64

Tony prince is the project manager for the recreation and wellness intranet project. team members include you, a programmer/analyst and aspiring project manager; patrick, a network specialist; nancy, a business analyst; and bonnie, another programmer/analyst. other people are supporting the project from other departments, including yusaff from human resources and cassandra from finance. assume that these are the only people who can be assigned and charged to work on project activities. recall that your schedule and cost goals are to complete the project in six months for under $200,000.task 2identify at least eight milestones for the recreation and wellness intranet project. write a short paper describing each milestone using the smart criteria. discuss how determining these milestones might add activities or tasks to the gantt chart. remember that milestones normally have no duration, so you must have tasks that will lead to completing the milestone.

Answers: 3

continue

You know the right answer?

You are the international manager of a us business that has just invented a revolutionary new person...