Answered>Order 465

The cost of investment in manufacturing facilities will be a major one for the American firm, but it is not outside its reach. If these are the firm’s only options, which one would you advise it to choose? Why?

•Manufacture the product at home and let foreign sales agents handle marketing.

•Manufacture the products at home but set up a wholly owned subsidiary in Europe to handle marketing.

•Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by a 50/50 joint venture, and marketed by the European firm.