Reference no: EM132395549 , Length: 2500 Words

International Business Assignment -

A small Malaysian firm has developed a valuable new medical product using its own unique biotechnology know-how and is currently trying to decide how best to serve the American Market. The cost of investment in manufacturing facilities will be a major one for the firm although this is not an issue. The firm has several options for its international venture as follows:

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

2. Manufacture the product at home and set up a wholly owned subsidiary in the US to handle marketing.

3. Enter into an alliance with an established Mexican pharmaceutical firm where the product would be manufactured in Mexico through a 50/50 joint venture and marketed through its existing sales agents in the US.

If these are the firm's only entry mode choices, which one would you advise the firm to choose? You are required to provide both theoretical and empirical arguments in the choice of entry mode made by the firm.

Table of Contents -

1. EXECUTIVE SUMMARY

2. INTRODUCTION AND BACKGROUND TO THE COMPANY

3. LITERATURE REVIEW

3.1 ENTRY MODE DECISIONS AND THEIR IMPORTANCE

3.2 TYPES OF ENTRY MODES AND FACTORS THAT INFLUENCE ITS CHOICE

4. OPTIMAL CHOICE OF ENTRY FOR BIOLIFE

4.1 THE BENEFITS

4.2 THE RISKS

5. CONCLUSION.