The paper "Partnership between Jaguar Land Rover and Chery Automobile Company" is a perfect example of a business assignment. One phenomenon that has caught the attention of the world is globalization. Globalization is the process where different countries are incorporated into a single society (Glyn, 2004). It has led to the integration of economies due to trade and financial flows. Globalization has enabled local companies to expand into foreign countries and has promoted the world economy. It has therefore influenced the origin and strategic direction of businesses today. Due to minimal trade restrictions, which have resulted from globalization, companies can grow their market share by exploiting other countries (Banerjee, Carter and Clegg, 2009).
One market that has been considered favourable by many companies in China. However, it has proven difficult to grab a sizable share of the Chinese market. In 2012, Jaguar Land Rover decided to form a joint venture with Chery Automobile Company in China (Wachman, 2012). China is Jaguar Land Rover’ s third-largest market with the potential to boom in the near future which led to the company forming a partnership with Chery Automobile. This report will analyze the external issues affecting Jaguar Land Rover and Chery Automobile.
It will also describe the type of partnership between the two companies, the risks associated with it and its comparison with the earlier acquisition of Jaguar Land Rover from Ford. By using relevant theory, the report will analyze the national and corporate culture of the companies and their impact on the partnership. In addition, the paper will discuss the effects of the exchange movement on the partnership and the challenges of doing business in foreign countries. Question 1 External Issues Driving Jaguar Land Rover and Chery Automobile Company Political Environment One political influence that drives Jaguar Land Rover and Chery Automobile is the Chinese government.
The Chinese government is involved in the operations of multinational corporations because they influence the economy of the country (Lu et al. , 2008). The government provides protection and incentives to the automobile industry such as financial support for research and development projects and protection for intellectual property rights.
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