5. You are the international manager of a U.S. business that has just


developed a revolutionary new personal computer that can perform the


same functions as existing PCs but costs only half as much to


manufacture. Several patents protect the unique design of this computer.


Your CEO has asked you to formulate a recommendation for how to


expand into Western Europe. Your options are (a) to export from the


United States,

 (b) to license a European firm to manufacture and market


the computer in Europe, or 

(c) to set up a wholly owned subsidiary in


Europe. Evaluate the pros and cons of each alternative, and suggest a


course of action to your CEO.