NVCC Caterpillar Joint Venture – China Discussion

Purpose

This activity helps you understand international strategic alliances and joint ventures, (CO10) and market assessment and business organization, (CO5) (CO11), as well as entry strategies for international production and sourcing, (CO6).

Directions

GLOBAL SITUATION: This video offers a case history into Caterpillar’s 30+ year history of FDI (Foreign Direct Investment) and IJVs (International Joint Ventures) in China and gives an overview of their newest IJV in China, An Qing CSSC.

Part A: Watch the video below

Watch VideoCaterpillar Joint Venture – China

User: n/a – Added: 5/25/12

YouTube URL: Caterpillar Joint Venture – China

and answer the following questions in short paragraph form. It may be helpful to research and add an outside resource or two. (Always note your sources).

1. What business is Caterpillar in?
2. Why did they choose China?
3. How did they choose their IJV partners?
4. What are Caterpillar’s criteria for IJV success?
5. How do the Chinese view Caterpillar as their IJV partner?

Make your initial post answering the questions above by 11:59 p.m. on Wednesday to allow for sufficient time for replies and quality discussion. You will not be able to see the posts of your classmates until you make your initial post.

Support your choices with your reasoning and references. References are mandatory in this discussion and they should not be just from your text. This exercise is about an exchange of ideas versus giving the “right or wrong” answer!