Suppose a firm wants to expand sales of its product into a foreign country. Should the firm license local firms in the foreign country to use its technologies to produce the product or should it set up a foreign operation that it owns and controls? What factors should the firm consider in taking the decision? When identifying these factors, clearly explain how and why they push the decision toward one or the other of the two available choices.

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The Answer of Suppose a firm wants to expand sales of its product into a foreign country. Should the firm license local firms in the foreign country to use its technologies to produce the product or should it set up a foreign operation that it owns and controls? What factors should the firm consider in taking the decision? When identifying these factors, clearly explain how and why they push the decision toward one or the other of the two available choices.

Suppose a Firm Wants to Expand Sales of Its Product