Balancing the Paradox of Localization and Globalization : Research and Analyze the Levels of Market Involvement for Multinational Carmakers in China's Market

• Main Authors: Chen, Jun, Jiao, Zhiqiang
• Format: Others
• Language: English
• Published: Högskolan i Kalmar, Handelshögskolan BBS 2008
• Subjects: Multinational Corporation; Automotive Industry; China market; Paradox; Globalization and localization; Business studies; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:hik:diva-718

Multinational Corporations (MNCs) are facing the paradox of globalization and localization in entering each new market. Generally, there are two perspectives which regard to how a MNC configure its cross-border activities: The first is global convergence perspective, which focuses on leveraging corporate resources and attaining global synergies. The second is international diversity perspective, which lays more emphasis on local adaptation and harnessing diversities. Both perspectives have their pros and cons, a balance between international standardization and local adaptation is vital. For the major Auto Giants in the world operating and competing worldwide, the significance of China market is as clear as day to everyone. This paper focuses on how the major Auto Giants balance the paradox of globalization and localization in the China market. In other words, how the MNCs deal with the dilemma of globalization and localization under different strategic contexts? We adopt a model which divides their activities in China into 6 stages and which includes criteria with regard to the dilemma of localization and globalization.