For General Motors (GM) China, 2004 has brought a wide range of new problems that add to the already complex business environment. Sectoral structure was changing rapidly, the demand and supply projections for cars promised a significant increase in sales and profits, but all of a sudden optimism disappeared. China's entry into the World Trade Organization have created expectations of a level playing field for foreign investors, but the major barriers remained, including the continuation of government intervention, competition with government-owned firms, assembly, arbitrary rules, such as sectoral credit restrictions and violations of intellectual property rights by copying foreign designs of roads and false-branding part. Meanwhile, inflation is rising and the government is confident and how to use monetary and fiscal policy. This is an abridged version of GM in China, the product 905M07. "Hide
by David W. Conklin, Daniel Cadieux Source: Richard Ivey School of Business Foundation 10 pages. Publication Date: March 22, 2005. Prod. #: 905M30-PDF-ENGGM IN CHINA (Abridged) Case Solution