BFMA 6043 - INTERNATIONAL BUSINESS
Notice on 1st Assignment - URGENT!
Dear all, sorry for the delay in updating this blog. However, please be advised that Dr. Mohd Sobri has given our 1st assignment as below:
QUESTION 1
You are the
international manager of a U.S business that has just develop a revolutionary
new personal computer that can perform the same functions as existing PCs but costs
only half a 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 United States,
B)
To license a Europe firm to manufacture and market the
computer in Europe.
Or
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.
QUESTION
2
A
small Canadian firm that has developed some valuable new medical products using
its unique biotechnology know-how is trying to decide how best to serve the
European Union. Its choices are given below. The cost of investment in
manufacturing facilities will be a major one for the Canadian firm, but it is
not outside its reach. If these are the firm’s only options, which one
would you advise it to choose? Why?
(a)
Manufacture
the product at home and let foreign sales agents handle marketing.
(b)
Manufacture
the products at home and set up a wholly owned subsidiary in Europe to handle
marketing.
(c)
Enter
into a strategic alliance with a large European pharmaceutical firm. The
product would be manufactured in Europe by the 50/50 joint venture and marketed
by the European firm.
QUESTION 3
Please refer to text book page 426 closing case and answer the case discussion questions.
