Entry mode versus acquisition or grassroots investment

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None of China's domestic automakers (an industry in which all major players have global operations) have been able to penetrate U.S. and European markets. Their new strategy is to start out with smaller steps, R-D in Silicon Valley and parts manufacturing in Detroit. (See "China's Strategy in U.S. Car Market: Make Parts First.," The Wall Street Journal, September 18, 2015 and "Beijing Auto Group Opens Center in Silicon Valle," The Wall Street Journal, September 11, 2015). This week assess the advantages and disadvantages of this entry mode versus acquisition or grassroots investment in full auto assembly and branded sales.

Reference no: EM133424493

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