Discuss the disadvantages of international expansion for firms, particularly in regard to intellectual property. Substantiate with an example from your reading assignment or from your own experience.
What will be an ideal response?
Student examples will vary. A sample answer follows.
The issue of protecting intellectual property in foreign markets looms large. The software, movie, and music industries have long lamented large-scale copyright infringements in many foreign markets. In addition, companies may find their intellectual property being siphoned off. For example, when a multinational company sells its products in foreign markets with little or no change, it leaves itself open to the expropriation of intellectual property (IP). Looking at the multinational company's products and services, pirates can reverse-engineer the products to discover the intellectual property embedded in them. In Thailand, for example, a flourishing market for knockoff luxury sports cars (e.g., Ferraris, Lamborghinis, and Porsches) has sprung up.
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Indicate whether the statement is true or false
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