Case Discussion Questions:
1. Why do all multinational automakers choose to use
FDI to enter this market? What are the drawbacks
of using other entry modes such as exporting and
2. Some early entrants (such as VW) succeeded and
some early entrants (such as Peugeot) failed. Similarly,
some late entrants (such as Honda) did well
and some late entrants (such as Ford) are struggling.
From a resource-based standpoint, what role does
entry timing play in determining performance?