A small Canadian firm that has developed valuable new medical

 

products using its unique biotechnology know-how is trying to decide

 

how best to serve the European Union market. Its choices are given

 

below. The cost of investment in manufacturing facilities will be a major

 

one for the Canadian 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?

 

a. Manufacture the products at home, and let foreign sales agents handle

 

marketing.

 

b. Manufacture the products at home, and set up a wholly owned

 

subsidiary in Europe to handle marketing.

 

c. Enter into an alliance with a large European pharmaceutical firm. The

 

products would be manufactured in Europe by the 50–50 joint venture

 

and marketed by the European firm.