Case Discussion:
Question 1: What are the long-term prospects for the Chinese market?
Question 2: Does it make sense for GM to produce automobiles for the Chinese market in China? Why?
Question 3: What do you think would happen if GM tried to serve the Chinese market by exporting production from the United States?
Question 4: Why do you think GM went into partnership with a state-owned company to produce automobiles in China? What are the possible benefits of such a venture? What might be the downside?
Question 5: What does this case teach you about benefits and costs of import tariffs?