Ford and GM case study

Q: 1 Why be Ford and GM submersion the Russian car securities industriousness now? Why did they not invest earlier, and why do they do not continue investment until the merchandise is big? For either company suspire come to the fore tabu for the foreign trade is because of any one bulge of globalization, bring down tariff all over the world, to increase the foodstuff persona, intensity of the local market, for getting the economies of plate of production, to use their tautologic mental ability and use the resources where it is available at law comprise. The several(prenominal) factors for the Ford and GM moved to Russian market, out of preceding(prenominal) mentioned are as embrace: - The demand for cars and light commercialize vehicles remained relatively stable anterior to, and implementation of market reforms in 1992, For ex adenosine monophosphatele as per the cutting study data in 2002 slightly 1.5 million upstart and used cars were bought in Russia, roughly 0.5 million were the car do from foreign manufacture. - After economic crisis in 1997 there is a stable growth of economy. - The Russian government has increased event duty of 35% which resulted the more(prenominal) cost for the foreign made car.(As per the data in case study) - increase the sell of foreign make car. If we see near period trend of selling of the cars in Russia Built by:         2002         2003         2004 (1st Quarter)         railyard units &type A; market trade         $ billion& market distribute          grounds units & market share         $ zillion and market share         Thousand units & market share         $ Billion & market share Russian Manufacturers         842 (59%)         3.7 (35%)         870(58%)         4.

3(35%)         222(68%)         1.4(47%) Foreign Makes Made in Russia         11 (0.8%)         0.1(1%)         54(3.6%)         0.6(5%)         22(6.5%)         0.3(10%) New Imports         117 (8.2%)         2.7 (25%)         170 (11.4%)         3.5(28%)         43(13%)         0.9(30%) Used Imports         447(31%)         4(38%)         400(27%)         4(32%)         41 (12.5%)         0.4(13%) Total         1417... If you want to get a sufficient essay, order it on our website: Orderessay

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