International expansion into China
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I need 250-300 words to answer the following:
Imagine that you are the manager of a US based company that is considering an international expansion into China. (You can pick the type of business.) What mode of entry would you be most likely to choose for the initial project? What would be some of the determining factors behind your choice? What would be your second choice or contingency plan if your first choice didn't work out and why?
(Modes of entry include: Export and import; Management contracts; Licensing; Franchising; Joint ventures &strategic alliances; Wholly owned subsidiaries (FDI))
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Solution Summary
The solution examines international expansion into China for a United States based company. Export and Import management contracts are examined.
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ANSWERS
As a manager of the US based company, my first choice of the mode of entry is a joint venture with a local Chinese partner.
Obviously the joint venture option would result in synergy. The end result would enhance output since the two companies shall have pooled their resources together. These are machines and man power (expertise). The resultant production would surpass the individual production capacities of the two joint ...
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