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International business of ABC pharmaceutical firm.
ABC pharmaceutical firm is a small Asian firm in China; the firm has its own factory which 200 workers factory. The company currently developed some valuable new medical products using its unique biotechnology expertise. The top managers of the firm want to expend the market and decide how to best serve the European Community market. The company has three options:
a. Manufacture the product at home and let foreign agents distribute and sell the product in the European market;
b. Manufacture the product at home and set up a wholly owned subsidiary in Europe;
c. Enter into…
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