US Business International Manager Module 8 Simulation Exercise

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Simulation exercise: you are the international manager of a US business that has just invented a revolutionary AI equipment, but costs only half as much to current manufacture.

Your CEO has asked you to decide how to expand into the China or India market.
Your options are:

(i) to direct export from the United States (browse Chapter 6 and 10 if necessary)
(ii) to license a China or India firm to manufacture (browse Chapter 6 and 10 if necessary)
(iii) to set up a wholly owned subsidiary in India or China with foreign direct investment.

Evaluate the pros and cons of each alternative and suggest a course of action to your CEO.

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