BMW is planning to make a big push into markets around the world with its MINI brand. If BMW has valuable know-how that cannot be protected with a licensing contract and also faces high transportation costs, BMW should ______.
Multiple Choice:
A. export from Germany.
B. use different technology.
C. invest directly in target markets.
D. outsource all production.
E. consider a less popular vehicle.

As the BMW is planning to make a big push into the markets around the world with its mini brand it having a valuable know-how. But faces a transportation cost, therefore, needs to set up its production unit and outsource them all around the world as to save time and manage resource efficiently.

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Tundexi Tundexi · Answer 2 · 2021-10-29T11:14:30+02:00

The best investment option will be that BMW should invest directly in the target markets.

Since BMW is planning a big push into the markets in countries from around the world with its mini brand, it should try considering setting up assembly in each target market.

The issue of transportation cost of delivering cars and sourcing of equipment will be out of the investment problem.

Therefore, the cost of license and setting up the assembly in the target market will be the best investment strategy. Hence, Option C is correct.

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