GLOBAL JOURNAL OF BUSINESS RESEARCH ♦ VOLUME 3 ♦ NUMBER 2 ♦ 2009 AN EMPIRICAL STUDY OF WHOLLY-OWNED SUBSIDIARIES AND JOINT VENTURES FOR ENTRY INTO CHINA MARKETS Yung-Heng Lee‚ Northwestern Polytechnic University‚ USA Yann-Haur Huang‚ Northwestern Polytechnic University‚ USA Mei-Jane Chan‚ Northwestern Polytechnic University‚ USA ABSTRACT The aim of this study is to empirically investigate the effectiveness of The Eclectic Theory in explaining the entry mode choices of Taiwanese Electronic Components
Premium Management Strategic management Generally Accepted Accounting Principles
Chapter 04 Consolidation of Wholly Owned Subsidiaries Multiple Choice Questions On July 1‚ 2009‚ Link Corporation paid $340‚000 for all of Tinsel Company’s outstanding common stock. On that date‚ the costs and fair values of Tinsel’s recorded assets and liabilities were as follows: 1. Based on the preceding information‚ the differential reflected in a consolidation workpaper to prepare a consolidated balance sheet immediately after the business combination is: A. $0. B. $25‚000. C. $70
Premium Balance sheet Asset Goodwill
Ford & General Motors in Russia In July 2002‚ Ford Motor Company officially opened its first Russian car factory near St. Petersburg. The factory‚ which cost some S150 million to build‚ is 100% owned by Ford and represents the first wholly owned investment by a foreign carmaker in Russia. The factory is tiny by international standards; it will employ 800 people and initially will produce 10‚000 Ford Focus cars a year. By comparison‚ a typical auto plant in the developed world produces 200‚000
Premium Ford Motor Company Automotive industry General Motors
Chapter 05 Consolidation of Less-than-Wholly Owned Subsidiaries Multiple Choice Questions Bristle Corporation acquired 75 percent of Silver Corporation’s common stock on December 31‚ 2008‚ for $300‚000. The fair value of the noncontrolling interest at that date was determined to be $100‚000. Silver’s balance sheet immediately before the combination reflected the following balances: A careful review of the fair value of Silver’s assets and liabilities indicated that inventory‚ land
Premium Balance sheet
GM and AvtoVAZ of Russia Introduction In June of 2001 General Motors and AvtoVAZ were sitting down to finally negotiate a deal that they had originally made in 1999. The joint venture was to see the two companies jointly build and sell Chevrolets in the Russian market. The Russian market was expected to boom and account for a significant share of global growth over the next decade. This was also a step forward to help revive the economy in postcommunist Russia. GM founded in 1908‚ was the
Premium Automotive industry General Motors
WK#10‚ DQ2 Element 1: Under what conditions might a company prefer establishing a joint venture to a wholly owned subsidiary in a foreign country? In Element 3‚ present an example of a company with a wholly-owned subsidiary and a joint venture in two different foreign markets. Explain why the management team of this corporation chose each of the investment models. According to Ball et al. (2009)‚ joint venture is defined as “A cooperative effort among two or more organizations that share
Premium Corporation Subsidiary Parent company
electronics‚ entertainment‚ audio‚ video and design. The personal consumer technology giant Sony saw immense opportunities in the early mobile phone industry. Sony predicted the industry’s movement towards multi-media broadband and foresaw the future consumers’ needs of mobile handsets with multi-media content such as movies‚ pictures and games. It was a perfect market for Sony to venture into with its expertise in consumer technology. Previously‚ Sony had missed entering the mobile phone market with the
Premium Management Marketing Strategic management
market a product in a foreign country. (Hill‚ 2004) This type of venture is growing rapidly and has proven success but many decisions need to be made by companies before they take the risks that are associated with FDI. Certain things such as investment timing and the type of investment need to be considered and many theories are associated with these decisions. In the following case study‚ I will discuss the decisions that Ford and GM have recently made regarding the entrance into Russia ’s automobile
Premium Automotive industry Automobile Investment
a deal that they had originally committed to in 1999‚ to jointly build and sell Chevrolets in the Russian market. This car market was expected to account for a significant share of global growth over the next decade. GM felt pressure to jump on board or miss the opportunity. Other auto makers were already on the move. Ford‚ Fiat and Daewoo were already exploring their own opportunities in Russian and GM did not want to be left out in the cold. However‚ things were not going to be easy due to
Premium Automotive industry Fiat Automobile
renaissance possible. Is the rise of technology improving how we think‚ or is it negatively impacting it? Are we getting “smarter” with the rise of this technology? This highly debated topic brings up many differing arguments. Clive Thompson in “Smarter than You Think: How Technology is Changing Our Minds for the Better” argues that technology makes us smarter by extending our memory and augmenting our abilities. I argue that this view is dependent on the way that you define the word smarter. What makes
Premium Technology Science Psychology