A South Korean electronics manufacturer has patented a new technology for artificial intelligence (AI) enabled wearable devices.
Question:
A South Korean electronics manufacturer has patented a new technology for artificial intelligence (AI) enabled wearable devices. Given the pace of technological changes, the company wants to quickly scale up production and increase sales. It is considering the following options.
Country | Market Conditions | Cost Conditions for production | Political Risk | Corruption and legal institutions |
A | High growth | Low cost | High | High corruption; Weak legal institutions |
B | Moderate but higher than the home country (Korea) | Low cost | Moderate | Low Corruption; Strong legal institutions |
C | High growth | High Cost | Low | Low corruption; Strong legal institutions |
D | No growth (stagnant) | High cost | High | High corruption; weak legal institutions |
Drawing rationale from the OLI framework/eclectic paradigm, discuss which markets the manufacturer should enter and what market entry strategies it should use in each of them.
International Business
ISBN: 9781292274157
8th Edition
Authors: Simon Collinson, Rajneesh Narula, Alan M. Rugman