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FDI from the standpoint of a manager for Geely in Sweden?
200 words minimum
Geely is a Chinese automobile
company that is going to make FDI in the country of Sweden. Country
of Sweden is known for its stable economic growth, lower inflation
rates, extensive welfare schemes and civil liberties. Besides,
Sweden is one of the country of EU and making FDI in Sweden by
Geely of China, creates a plethora of opportunities in the market
of EU and it is very important for the Chinese Automobile makers.
From the perspective of manager of Geely, it is the cultural shift
where the China is known for communism and socialist culture, in
contrast to the liberal and open culture of Sweden. So, manager has
to make extensive adjustments in cultural preferences at local
level in Sweden to make FDI to be successful. The next standpoint
is the scope of business development opportunities where the
company had to compete with the brands like Volvo that is very
popular and pride of Sweden. Hence, managers at Geely has to not
only offer the best quality in their automobile products, but also
to make Geely cars and automobile to be perfectly matched with the
culture and tradition of Sweden, to be successful. It was probably
the reason that Geely acquired Volvo cars of Sweden so that they
could bring new models of Geely in the name of Volvo and
succeed. Further, managers at Geely has to adopt the
regulations with respect to automotive standards in terms of
quality, pollution emission and technology to succeed in EU along
with the market of Sweden. So, managers of Geely should
take this FDI to be highly challenging, though rewarding as it is
making Chinese investments to be away from the USA and into Sweden
as part of EU to develop a balance.
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