Provide a scenario where a company would enter a foreign market using the following modes of entry. Be sure to provide one scenario for each mode:
- Creating a turnkey project
- Establishing joint ventures
- Setting up a wholly-owned subsidiary
Give justification for your choices using the advantages or disadvantages for each mode discussed in course readings.
Read the closing case attached and prepare a response to the following questions:
- GM entered the Chinese market at a time when demand was very limited. Why? What was the strategic rational?
- Why did GM enter through a joint venture with SAIC? What are the benefits of this approach? What are the potential risks here?
- Why did GM not simply license its technology to SAIC? Why did it not export cars from the United States?
- Why has the joint venture been successful to date?