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International Business

You are the international business development manager of a US firm that has just invented a revolutionary new gadget, the "Big G", that can perform the same functions as existing PCs but costs only half as much to manufacture and is a quarter the size of existing laptops. Several patents protect the unique design of this gadget.
Your CEO has asked formulate a recommendation for how to expand into Brazil. Your options are:
1. to license an local firm to manufacture and market the Big G in Brazil, and or
2. to set up a wholly owned subsidiary in Brazil to manufacture and market the Big G.
Evaluate and explain the pros and cons of each alternative and select and suggest one of these to your CEO with APA citations.

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The response addresses the queries posted in 1058 words with references.

//Before writing about the international business development strategy for the organization, we have to understand the basic features of the new gadget. Then, we will discuss about the two options for the firm to expand its business in Brazil. We will also discuss about the first option for the company, which is licensing.//

Introduction

A US firm has just invented a revolutionary new gadget, the "Big G" that can perform the same functions as existing PCs but costs only half as much to manufacture and is quarter to the size of existing laptops. Several patents protect the unique design of this gadget. Firm wants to expand its business in Brazil. There are two options in front of the firm that are:

? To license a local firm to manufacture and market the Big G in Brazil, or

? To set up a wholly owned subsidiary in Brazil to manufacture and market the Big G.

Licensing

Licensing is an arrangement by which a firm transfers its intangible property such as expertise, know-how, blueprints, technology and manufacturing design to a firm located abroad. It is also known as technical collaboration. The firm transferring technology, etc. is known as the licensee. The arrangement is meant for a specific period. The licensor gets technical service fees from the licensee. The license, on the other end, has not to make a huge investment on research and development. Thus, both the parties reap the benefits of licensing.

A license can be either exclusive or non-exclusive or cross. In an exclusive license, the arrangement provides exclusive rights to produce and market an intangible property in a specific geographic region. On the contrary, a non-exclusive ...

Solution Summary

923 Words, APA Format

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