What are, in general terms, the risks inherent in between the two expansion foci? That is, what are the advantages and disadvantages of establishing a wholly owned subsidiary in Germany vs. a Strategic Alliance in China? Is there any alternative structure you might propose that would maximize our control. Do not focus here on the intellectual property issues. Answer each of these questions and specifically address the following: Considering everything you just answered, should IrvComp expand into both Europe and Asia?

Some background information: Solar projects require approximately ve components to be successll. 1. Control of the land, including permits and environmental issues; 2. Good management; 3. Proven technology; 4. A good engineering, procurement, and construction company (EPC) and 5. An ofake agreement (the Purchase Price Agreement \"the PPA\") which guaranteed the payment of a certain rate for the energy issued. The PPA is many times issued by a public municipal utility company. The current exchange rate is presently 1 USD = .728 Euros and the Euro is presently devaluating. In Europe and prior to your arrival at ISolar, a small, private, German based, solar consulting agency, Leitch Consulting \"LC\" was hired to facilitate the development of solar projects initially in Germany and have done so well that they are themselves piggybacking on ISolar's expansion. Their job was to make sure that solar projects had [Solar panels as part of the component mix mentioned above in the background information. LC has provided many valuable services in relation to developers choosing the Answer and with regards to the highly political world of municipal utilities. You also have responsibility for LC worldwide. On the other side of the world you have just begun to look at Asia. In particular, from your previous experience working inAsia, you have great relationships and feel fairly condent in being able to establish a strategic alliance in China with Hangzhou Yellow Dragon Company. (\"HYD\") In Hangzhou, Zhejiang to be precise. (The strategic alliance is govemrnentally mandated if ISolar is to establish operations.) Hangzhou is a very large, highly prosperous city just south of Shanghai. With the HYD / ISolar strategic alliance you are seeking to establish the most reliable and inexpensive means of manufacturing some of the key components of the solar panels. HYD has been known however to take advantage of new technology. You have not yet determined what those components will be. Exchange rate is 1 USD = 6. 825 Yuan Tangentially related to the Asia expansion, the CEO of ISolar has been approached by a very wealthy Burmese business man who is looking to establish solar energy capabilities initially in Naypyidaw, the capital of Myanmar (Myanmar is an exa'emeb: impoverished 4"I Wbrld Country) He has very good links to the Military Junta and claims he can \"guarantee\" a successful project. . He is also willing to invest heavily in any transaction. Myanmar ranks very poorly on the corruption index but does have a good source of Indian software and hardware engineers that may provide a very inexpensive source of \"manufacturing capability\". Perhaps just as important is the fact that \"The Answer\" may provide for people of Myanmar the ability to obtain cheap renewable electricity that would assist its development. Since 2001, the ofcial exchange rate has varied between 5.75 and 6.70 kyats per US dollar (8.20 to 7.00 kyats per euro). The CEO values your opinion tremendously and has asked you to address the following questions on the basis of your general international management knowledge and on the attached diagram. She asked the questions without thinking through their implications. She asks you to answer each but taking into account that there might be some overlap with one or more of the other questions. She expects you to raise any and all issues and where appropriate make recommendations