Question
You are consulting for a global car designer. The firm you are consulting for have just designed several new car innovations. Their most important innovation
You are consulting for a global car designer. The firm you are consulting for have just designed several new car innovations. Their most important innovation is an electric car that is more energy efficient based on a self propulsion system. The innovation makes their cars able to travel greater distances than current competitors before needing to be recharged. Despite beliefs that competitors would be unable to imitate their technology, they are considering vertically integrating and manufacturing the cars themselves. You have been tasked with determining if they should (a) invest in a Greenfield manufacturing plant in Mexico, (b) manufacturing the car locally where production quality is high and exporting from the domestic market (Australia) or (c) licensing the technology to an established car manufacturer. Using Dunning's eclectic paradigm theory outline whether you consider exporting, licensing or FDI to be the optimum choice for market entry
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