Chapter IC, Problem 15.3CDQ

Summary Introduction

Case summary:

The case deals with the success of Company G in Country C. In 1997, Company G entered to Country C through a joint venture with Company S. Company G introduced additional models in 2007, as they thought that Country C is an important market. Company G believed that their overall success would reflect their decision of building cars as per the need of customers.

Even during the recent recession period, the auto market in Country C was strong. In recent times, Company G sells more cars in Country C when compared to Country U. A recent research predicted that the demand will grow to reach 35 million vehicles per year by 2022.

To determine: Why Company G did not license its technology to Company S and why Company G did not export cars from Country U.