Answered: Your options are (a) to export from the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Q1) You are the international business development head of a United Kingdom based company that just designed a revolutionary new laptop that can perform the same functions as existing laptops but costs only half as much to manufacture. The design of this laptop is protected by several patents and copyrights. Your CEO has asked you to formulate a proposal for how to expand into the United States. Your options are (a) to export from the United Kingdom, (b) to license a firm based in United States to manufacture and market the computer there, and (c) to set up a wholly owned subsidiary in United States. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO.

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