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China?s challenge: The opportunities and risks that China?s booming economy provides

Listed author(s):
  • Ronald Jean Degen


    (International School of Management Paris)

The capability of designing to very low cost, and to compete successfully in the tough Chinese market can be transformed into a competitive advantage in other markets. On the other hand, MNCs that are not successfully in China will probably not acquire these capabilities. They will be in a cost disadvantage to compete against Chinese companies in their own markets. They run the risk of becoming secondary players to Chinese companies in the world market, as those competing in the microwave-ovens market against Galanz found out the hard way. MNCs have no choice; they have to accept ?China?s challenge? to continue world players. They have to win in China or lose everywhere.

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Paper provided by globADVANTAGE, Polytechnic Institute of Leiria in its series Working Papers with number 36.

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Date of creation: 29 Jul 2009
Handle: RePEc:pil:wpaper:36
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