Integrative case 2.4 competing in china’s automobile industry

Case Discussion Questions:

1. Why do all multinational automakers choose to use

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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?