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As Director of International Development, your job is to develop and execute market entry strategies for your Italo/American auto manufacturing company FIAT/Chrysler. You recently entered the US market, but the US is not where the growth is. Everyday newspapers are heralding the Chinese miracle.
Unfortunately, your predecessor failed to anticipate the rapid economy growth in China and allowed your main competition, namely Volkswagen, to capture 20 percent of the domestic market. Now you must play catch—up. How can you increase your market presence in China? Exporting may not be the best option due to the 32 percent import tax. Please list FIAT’s options for entering the Chinese market along with advantages and disadvantages associated with each option.
Which options(s) would you choose?
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