Why do all multinational automakers choose to use fdi to, Case Study

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Why do all multinational automakers choose to use fdi to

Case Study: COMPETING IN CHINA'S AUTOMOBILE INDUSTRY

Case Discussion Questions:

1. Why do all multinational automakers choose to use FDI to enter this market? What are the drawbacks of using other entry modes such as exporting and licensing?

2. Some early entrants (such as VW) succeeded and some early entrants (such as Peugeot) failed. Similarly, some late entrants (such as Honda) did well and some late entrants (such as Ford) are struggling. From a resource-based standpoint, what role does entry timing play in determining performance?

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