Emerging economies are attractive from a business standpoint, but political, economic, and cultural differences pose challenges to many foreign firms who choose to operate overseas. This mini-case examines the obstacles faced by the Occidental Petroleum Corporation when it entered China in the early 1980s.
Entry Mode (D): Occidental’s Accident
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After reading and discussing the material, students should:
- Analyze the critieria of China's open-door policy when it was instituted in 1979.
- Describe the different strategic goals of the joint venture between Occidental and the Chinese National Coal Development Corporation.