Company A is based in Bangkok and produces important car components as well as automotive parts. A
Question:
Company A is based in Bangkok and produces important car components as well as automotive parts. A has a state-of-the-art production line, employs 75 people (including 5 employees in his own R&D department) and has an annual income of 55 million baht. It exports 45% of its production (90% goes to the South-East-Asian (SEA) market and 10% goes to the United States (US)). Around 55% of its production goes to local automotive hubs. A has currently no intention to increase exports to the US. However, A recognizes that car production is moving away from Thailand to hubs in Malaysia or Indonesia. Company A has 2 patents and a trademark (successfully applied in SEA, USA, Japan and EU).
Q 1: Should comp. A set up a branch in SEA or sell or license its IP to another company in SEA?
Q 2: Should comp. A set up a branch in the US, sell or license its IP to another company in the US?
What is your recommendation based on the information above?
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey