beijing jeep Essay

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Beijing Jeep At a Cross-Roads: Facing The Challenge of China’s Entry Into the WTO Case Summary Beijing Jeep Corporation, Ltd. (BJC) founded in China in 1984. BJC was the automotive industry first appeared in China and was the company that conducted in joint venture with American Motors Corporation (AMC). The joint venture was the biggest in the history of automotive China where AMC had a 31.35% share with $8 million in cash and $8 million in technology. BJC's party agreed to have a 68.65% share, and embed a number of cash of $35 million. After the joint venture started in January 1984 the two parties do not agree on their cars that will be produced. Based on the initial agreement, BJC should continue to produce long series BJ jeep while developing the new generation. The U.S. automotive companies wanted the new product is similar to the new AMC jeep belonging to the existing, but the company china wanted for a military jeep for the army. The army wanted a vehicle with four doors can be opened over the army can perform in a shot from the car and jump quickly enter and exit. Demand for such vehicles can not be designed based on the jeep AMC existing, and the vehicle as desired from the Beijing Automotive Works (BAW) cost at least a $700 million. BJC and the AMC do not have the amount of money like that, and then try to convince the AMC Chinese to produce the new vehicle type Jeep Cherokee. It appeared that after convinced, the Chinese partners agreed then changed objectivity AMC began selling the cars to get money and selling the kits to get money. Appears a new problem where BJC can get foreign exchange for these kits. According to the rules when a number of foreign exchange in large numbers required a special license meanwhile BJC had never discuss about this to the Chinese government. The BJC have problems to get the import license from the government

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