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CRT Manufacturing Ltd. produced a line of specialized machine tools used in the production of parts for the automotive industry. The corporation’s product line was well-known in North America for quality and durability, but virtually unknown in Europe. With the trend in the automobile industry towards the production of vehicles for a world market, CRT Manufacturing Ltd. decided to expand its operations to Europe. Management at CRT Manufacturing Ltd. has narrowed its approach to either a foreigndistribution agreement or a branch plant. A branch plant would require a significant capital commitment, as production equipment for the specialized machine tools would be expensive, as would be the training of employees in production methods. Since a certain amount of expertise would also be required on the part of the sales staff, the question of training would be important in order to sell the products in the new market. Advise CRT Manufacturing’s management on the range of legal and contract issues that would be associated with the two proposed courses of action.
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