Question

Question 22

1. 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 China. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO (15 Points)

                                  

   Your options are:

                         

   a. to export from the US

                                   

   b. to develop a Turn-key project for a Chinese firm to manufacture and market the computer in Asia

                                               

   c. to acquire an existing Chinese PC manufacturer’s factory and produce it there

                                 

   d. to do a greenfield investment to China

                           

   Your Suggestion – Why?:

Answer 1

b. to develop a Turn-key project for a Chinese firm to manufacture and market the computer in Asia

- This option helps to maintain the patents and technology a secret and unique to the company and to lower down the costs and risks.

Sincerely request you to please give me an upvote. Thanks in advance.