143k views
4 votes
In what way did General Motors enter the Chinese market in this case?

A) Exporting
B) Licensing
C) Joint Venture
D) Franchising

1 Answer

4 votes

Final answer:

General Motors entered the Chinese market through a joint venture, aligning with Chinese regulatory preferences and capitalizing on the economic growth of China.

Step-by-step explanation:

In what way did General Motors enter the Chinese market? General Motors entered the Chinese market through a joint venture. This approach allowed GM to gain access to the Chinese market while complying with the Chinese government's regulations that often favor or require foreign firms to partner with local companies. A joint venture is a strategic alliance where two or more parties, typically businesses, form a partnership to share markets, intellectual property, assets, knowledge, and profits. In China's growth as an economic powerhouse, particularly since the reforms under Deng Xiaoping and China's accession to the WTO, multinational corporations like GM have commonly used joint ventures to establish a presence in the market.

User Sophana
by
9.5k points