Question

As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?

Answer 1

Answer:

A joint venture

Explanation:

A joint venture -

It refers to as the business agreement between two or more groups in order to attain a common goal collectively , is referred to as joint venture .

The parties comes together with their resources to accomplish the goal together .

The common project can be a new business or any existing business .

In a joint venture , the profit and loss is equally shared among each of the member  .

Hence , from the given scenario of the question ,

The correct answer is joint venture .

Answer 2

Answer:

Export minimum public procurement policy

Explanation:

'Chinese government allowing foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises' : illustrates the case of -  'Export minimum public procurement policy'

This is a policy adopted by various economies. The policy states that foreign companies should use a minimum level of inputs from their domestic medium & small scale enterprises. This is to create equitable growth opportunities for the MSMEs. As MSMEs are important by perspective of - regionally balanced growth, income equity, employment opportunities generation ; they need this protection.