Western multinationals expand into China

China is one of the most important emerging economies at this time. And successful Western multinationals that are now generating annual profits in the country are inclined to reinvest them there.

Western multinationals expand into China

John Quelch and Ibáñez Gabilondo

Since the mid-1990s, many Western multinationals have established beach-heads in China by focusing on the three main population centres. The question now is whether to move beyond these major cities. John Quelch and María Ibáñez Gabilondo discuss the case for geographic expansion, reviewing the strategies that several leading multinational companies in retailing and consumer goods are already pursuing

There are six reasons why leading western multinationals are embracing the opportunities and risks of expansion.

First, in the boardrooms of many western multinationals, slower growth...

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