Cost of investment in manufacturing facilities

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Reference no: EM132905031

An Italian SME that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the US market. Its choices are given below. The cost of investment in manufacturing facilities will be a major one for the 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 the USA to handle marketing.

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

Reference no: EM132905031

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