International Business: The Challenges of Globalization (9th Edition) (What's New in Management)
International Business: The Challenges of Globalization (9th Edition) (What's New in Management)
9th Edition
ISBN: 9780134729220
Author: John J. Wild, Kenneth L. Wild
Publisher: PEARSON
Question
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Chapter 7, Problem 4TAI2
Summary Introduction

To Determine:

In what areas will the Global automaker company excise control and the areas where it might give up control to its partner needs to be identified.

Introduction:

The Global automaker company, which you work for, has decided to build a Greenfield automobile assembly facility in Costa Rica with a local partner in that country.

Suggestion:

Thus, the Global automaker will use TRIPS and TRIMS agreement to have control on ownership and trademark of the product. Additionally it will have control on the profit sharing and strategic planning. The company may cede control to the local partner in areas like managing the local workforce, adherence to local regulations and promotions in the local market.

Given information:

The following are the data given:

  1. Theory of Monopolistic Advantage
  2. Oligopoly Theory of Advantage
  3. Product Life Cycle Model
  4. Eclectic theory

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