Question

FDI from the standpoint of a manager for Geely in Sweden?

200 words minimum

Answer 1

Geely is a Chinese automobile company that is going to make FDI in the country of Sweden. Country of Sweden is known for its stable economic growth, lower inflation rates, extensive welfare schemes and civil liberties. Besides, Sweden is one of the country of EU and making FDI in Sweden by Geely of China, creates a plethora of opportunities in the market of EU and it is very important for the Chinese Automobile makers. From the perspective of manager of Geely, it is the cultural shift where the China is known for communism and socialist culture, in contrast to the liberal and open culture of Sweden. So, manager has to make extensive adjustments in cultural preferences at local level in Sweden to make FDI to be successful. The next standpoint is the scope of business development opportunities where the company had to compete with the brands like Volvo that is very popular and pride of Sweden. Hence, managers at Geely has to not only offer the best quality in their automobile products, but also to make Geely cars and automobile to be perfectly matched with the culture and tradition of Sweden, to be successful. It was probably the reason that Geely acquired Volvo cars of Sweden so that they could bring new models of Geely in the name of Volvo and succeed.  Further, managers at Geely has to adopt the regulations with respect to automotive standards in terms of quality, pollution emission and technology to succeed in EU along with the market of Sweden.  So, managers of Geely should take this FDI to be highly challenging, though rewarding as it is making Chinese investments to be away from the USA and into Sweden as part of EU to develop a balance.