Explores some of the economic and political compromises that have to be discussed by the company seeking to influence the structure of the industry. Installing the nascent industry of personal computer software in the People's Republic of China (PRC) in 1993. Microsoft has localized its software products for use in China. This localization can be done in the house of Microsoft, or can be contracted to local software vendors. Examines the costs and benefits of full integration and at arm's length market transactions. We also discuss the "delay" problem that occurs when the asset-specific partnerships are developed. "Hide
by Tarun Khanna Source: Harvard Business School 18 pages. Publication Date: February 13, 1995. Prod. #: 795115-PDF-ENG