Answer it in 250 to 300 words please thanks Q2. A small Canadian firm that has d
ID: 378495 • Letter: A
Question
Answer it in 250 to 300 words please thanks Q2. A small Canadian firm that has developed valuable new medical products using its unique biotechnology know-how is trying to decide how best to enter and serve the European Union market. Its choices are given below. The cost of investment in in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach (it can manage this). If these are the firms only options, which one would you advise them to choose? Why? (15 Marks) a. Manufacture the products at home, and let foreign sales agents handle marketing (export option). b. Manufacture the products at home, and set up a wholly owned subsidiary in Europe to handle marketing (license option). c. Enter into an alliance with a large European pharmaceutical (medicines) firm. The products would be manufactured in Europe by a 50-50 joint venture (JV) and marketed by the European firm (JV option).
Explanation / Answer
c. Enter into an alliance with a large European Pharmaceutical firm. The products would be manufactured in Europe by a 50-50 joint venture and marketed by the European firm.
I would advise the firm to go for the Joint Venture because of various reasons that will help them do good in the industry.