Question

You are the international manager of a U.S. 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 United States, ( b ) to license a European firm to manufacture and market the computer in Europe

Answer 1

Answer:

The correct answer is letter "B": to license a European firm to manufacture and market the computer in Europe.

Explanation:

In this case it is better to license a company en Europe so they can manufacture and sell the computer in that region because the new personal computer is patented already so in front of an irregular practice from the firm planned to be hired in Europe, there will be legal support stating who the creators of the new computers are. Besides, manufacturing the goods in Europe will avoid all kinds of import tax restrictions in Europe or the implementation of new taxes on the products that eventually may affect the revenue.