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Comment: Please answer the following 5 questions briefly but completely. Each answer should be no more then 1 page single spaced
1. Your firm has developed valuable new medical products using unique biotechnology know-how. You are trying too decide how best to serve your European clients. Your options are detailed below. The cost of building your manufacturing facilities will be large relative to your company’s capital, but is not outside your reach. If these are the ONLY choices your firm has, which one do you choose and why?
A. Manufacture the products 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 an alliance with a large European pharmaceutical firm. The products would be manufactured in Europe by the fifty-fifty joint venture and marketed by the European firm.
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