How these may influence your investment

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Case Study: WAVES Inc. is a California-based firm that specializes in the manufacturing of high- end surfboards. Consumers in the coastal African region (Tanzania, South Africa, Kenya) as well as Japan and the UK have recently discovered the joys of surfing. WAVES has hired you as a consultant to provide advice regarding global expansion.

Question: After a long debate, they have also decided to pursue some form of foreign direct investment (joint venture or possibly wholly owned subsidiary) in China to produce product for the Chinese market as well as to export to other regional markets. A negotiations team is preparing to depart in a week to meet with the appropriate government officials as well as potential partner firms. They have asked you to brief the team on what they might expect in terms of demands from the government. Also highlight some of the challenges within the Chinese economy and how these may influence your investment. For example, what concerns might you have regarding government influence in a prospective joint venture partner?

 

Reference no: EM133460873

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