Ford and GM case study

Q: 1 Why are Ford and GM submergence the Russian car securities industry now? Why did they non invest earlier, and why do they do not adulterate investment until the merchandise is bigger? For each company animate come to the fore egress for the foreign trade is because of any one out of globalization, reducing tariff all everyplace the world, to increase the market persona, saturation of the local market, for getting the economies of surmount of production, to use their tautologic capacity and use the resources where it is available at law exist. The several(prenominal) factors for the Ford and GM moved to Russian market, out of preceding(prenominal) mentioned are as follow: - The demand for cars and light commercialised vehicles remained relatively stable prior to, and implementation of market reforms in 1992, For ex adenosine monophosphatele as per the skid study data in 2002 slightly 1.5 million new and used cars were bought in Russia, near 0.5 million were the car made from foreign manufacture. - After prudence crisis in 1997 there is a stable growth of economy. - The Russian government has increased import 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 manufactured car. If we see near latest trend of selling of the cars in Russia Built by:         2002         2003         2004 (1st Quarter)         railyard units & market parcel         $ billion& market share         Thousand units & market share         $ zillion and market share         Thousand units & market share         $ one thousand million & market share Russian Manufacturers         842 (59%)         3.7 (35%)         870(58%)         4.3(35%)         222(68%)    Â Â Â Â Â Â 1.4(47%) Foreign Makes do in R! ussia         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, holy order it on our website: OrderCustomPaper.com

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