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Marketing quizz

1. A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the European Community market. Its choices are:

Manufacture the product at home and let foreign sales agents handle marketing.

Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing.

Enter into an alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm.

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? (Hill, 2007, p.505)

2. A firm in Washington State wants to export a shipload of finished lumber to the Philippines. The would-be importer cannot get sufficient credit from domestic sources to pay for the shipment but insists that the finished lumber can quickly be resold in the Philippines for a profit. Outline the steps the exporter should take to effect this export to the Philippines. (Hill, 2007, p.550)

3. In the discussion section provided for this chapter (Hill, 2007,p576-577), outline your recommendation for a manufacturing firm that hopes to sell its product worldwide

Will you manufacture in-house or will you outsource your manufacturing to an independent supplier located in one or more of the countries you have researched. Explain why.

If you decide to outsource, which country or countries will you locate your manufacturing operations. Explain why

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