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Question 2
Evaluate the advantages and disadvantages of the entry mode adopted by Tesla in China.
Entry mode:Greenfield invesment
-level of control(total control of the big venture)
-by passing trade barriers
-build greater local presence9customer proximity(local responsiveness)
-economies of scale( +sales level,+production volume,-production cost per unit)
-long term commitments/+costs/longer set up time
-valnerable to political/legal risks (political interference)(local operation subject to stringemnt
values,regurations)
-calnerable to local economic condition(economic instability-lower buying power)

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