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Why is Chinasuch a difficult country for a multinational corporation to enter successfully?
Member rating: No Rating | Words: | Submitted: Mon Dec 22 2003
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Why is China such a difficult country for a multinational corporation to enter successfully? During China's open door policy, many multinational corporations (MNC's) were naively enamored by the image of a one-billion-people market1. In their rush to capture market share, the MNC's simply tried to replicate in China what they were doing in entering other countries2. However this 'China dream' turned into a bottomless pit of capital without profit for many MNC's3. Hence the question adhered to in this essay is, why have these basic overarching strategies which have worked in so many other countries, not worked in China? Why is China a particularly difficult country for an MNC to enter successfully? There are three main types of entry strategies; export entry4, contractual entry5 and investment entry6. This essay will address the difficulties that are common in all the forms of entry, in terms of the aspects considered upon entering a country....
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