1. GO East, Young People, GO East
　Amanda Brendhart, Jose Gutierrez, and Rhoda Schreiberfounded and are partners in a small electronics firm, ElectronicVisions, that has developed and patented some state-of-the-artcomputer components. Vision has had moderate success sellingthese components to large U.S.-based computer manufactures. Thebiggest problem is that in recent months, the computer market hasbegun to turn soft, and many of the manufactures are offeringsubstantial discounts to generate sales. Therefore, although Visionhas found an increasing demand for its product, it now is grossingless money than it was several months ago.
　To increase both sales and profit, the partners have decided toexpand into Asia. Although this region is known for its low-costcomputer production, the group believes that countries such asChina, Malaysia, and Thailand soon will become more lucrativemarkets, because the U.S. government will make these countriesopen their doors to imports more fully. If trade barriers areremoved, the partners are convinced that they can export thegoods at very competitive prices. In addition, the partners intend tofind a partner in each in each marker so that they have someone tohelp with the marketing and financing of the product. Of course, ifthe components can be produced more cheaply with local labor, thepartnership is willing to forgo exporting and have everythingproduced locally.
　At present, the group is trying to answer three questions. First,what is the best entry strategy to use in reaching the Asianmarkets? Second, what type of marketing strategy will be mosteffective? Third, if production must be coordinated between theUnited State and an overseas country, what is the best way tohandle this? The partners believe that over the next 3 months, theywill have a very good idea of what is going to happen regarding the opening of Asian markets. In the interim, they intend to work up apreliminary strategic plan that they can use to guide them.Source: Hodgetts, R.M. & Luthans, F. (2012) International Management, McGraw-Hill.
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