Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Topics:
Business environment in China; Special economic zones; Sichuan Pepsi; Amway (China) Company Limited; Asian Strategic Investments Corporation (ASIMCO); Yamaha; McDonnell Douglas; Bank of England; Foreign direct investments (FDI); guanxi; Joint ventures; Intellectual property rights; Deng xiaoping; Low cost destination, cheap labour; Protectionism
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Abstract
By 1990, China had become a popular destination for foreign direct investment (FDI). There was an unprecedented boom in the FDI inflow into the country. Many companies made China their preferred manufacturing base. However, a number of them had a different and unpleasant experience. With examples of five well-known companies including Pepsi, Amway, Asian Strategic Investments Corporation (ASIMCO), Yamaha and McDonnell Douglas, this case helps the reader to understand the experiences of some of these earlier entrants that had invested heavily in China. This case also offers scope to discuss the factors that affect the functioning of foreign companies and the tough business environment existing in the country.
Location:
Other setting(s):
2004
About
Abstract
By 1990, China had become a popular destination for foreign direct investment (FDI). There was an unprecedented boom in the FDI inflow into the country. Many companies made China their preferred manufacturing base. However, a number of them had a different and unpleasant experience. With examples of five well-known companies including Pepsi, Amway, Asian Strategic Investments Corporation (ASIMCO), Yamaha and McDonnell Douglas, this case helps the reader to understand the experiences of some of these earlier entrants that had invested heavily in China. This case also offers scope to discuss the factors that affect the functioning of foreign companies and the tough business environment existing in the country.
Settings
Location:
Other setting(s):
2004