ges and disadvantages of exporting computers from the United States to Western Europe. There are greater sales due to greater demand, we could have availability to new markets, and higher revenue are some of the benefits of exporting. However, there are certain disadvantages, such as financial risks or governmental limitations in the export market, transportation concerns such as product damage, loss, or theft during shipping, and greater costs of paying employees' wages in the United States because demand is greater. For option B, licensing in a European company to build and commercialize a computer in Europe would bring the advantage of having close supervision of technology and the manufacturing process, having a lower startup cost, and having the advantage of local understanding and expertise. On the other hand, some disadvantages that we could run into would be like giving up control of the product, sharing revenues with the licensee, and the potential risk of forming a competitor. For the last option of having to set up the company's wholly owned subsidiary in a different country. The subsidiary will almost certainly have its own board of directors, goods, and customers. Some
Well expanding into the western Europe, we want to make sure to have cross cultural knowledge of the country that we are going to be expanding into. We would not want a case of Euro Disney for our company.
Option A here are advantages and disadvantages of exporting computers from the United States to Western Europe. There are greater sales due to greater demand, we could have availability to new markets, and higher revenue are some of the benefits of exporting. However, there are certain disadvantages, such as financial risks or governmental limitations in the export market, transportation concerns such as product damage, loss, or theft during shipping, and greater costs of paying employees' wages in the United States because demand is greater.
For option B, licensing in a European company to build and commercialize a computer in Europe would bring the advantage of having close supervision of technology and the manufacturing process, having a lower startup cost, and having the advantage of local understanding and expertise. On the other hand, some disadvantages that we could run into would be like giving up control of the product, sharing revenues with the licensee, and the potential risk of forming a competitor.
For the last option of having to set up the company's wholly owned subsidiary in a different country. The subsidiary will almost certainly have its own board of directors, goods, and customers. Some of those advantages will be easy reporting with the wholly owned subsidiary. In most cases, we will still have responsibility of consolidating all of the businesses' financial statements. More materials will be available. We could encounter lowers costs, improved negotiations, and better decision making as our company's model becomes more adaptable, decision-making becomes easier and faster for us in Europe. But we also have the disadvantage of Legal limitations, as well as technological and intellectual challenges. Increased cultural differences, as a result of so much diversification, there might be misunderstandings which could cause disturbance in the subsidiary's and organization's day-to-day operations. The impact of a dynamic corporate environment, as well as many cultural and political obstacles, may change the dynamics between the two organizations, impacting the success.
Overall, I would say that all options are good and bad but as CEO I would go with option B it provides a more promising future for our company.
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