Case Solution for Beijing Jeep Co. and the WTO

Complete Case details are given below :

Case Name :      Beijing Jeep Co. and the WTO
Authors :           Michael N. Young, Justin Tan
Source :             Ivey Publishing
Case ID :            901M61
Discipline :        Business & Government Relations
Case Length :    24 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
Beijing Jeep Corp. Ltd. was one of the first joint ventures between an American company, DaimlerChrysler Corp., and a Chinese enterprise, Beijing Automotive Works. Early in its operations, Beijing Jeep was given preferential treatment on tariffs and foreign exchange and had spent many years developing relationships with senior government officials who protected it from import competition. After several years of negotiations, there was an agreement of terms for China to enter into the World Trade Organization. Terms of this agreement called for a steep reduction in tariffs for imported automobiles, which would lower entry barriers to the Chinese automotive industry, thus creating more competition for the company. Tariffs on components imported from the United States would also be reduced, but not enough to offset the flood of imported vehicles into the market. Entry into the World Trade Organization would mean a lot of changes, and Beijing Jeep must determine whether it should continue focusing on the relationships it has built with the government, or approach its joint venture partner for additional support.
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