General Motors is a multinational company. In most countries in which it operates, General Motors opens facilities that give it total control over manufacturing and other processes. However, in China General Motors must partner with domestic companies due to legal and regulatory constraints. In these cases, GM owns part of the company, while the domestic firm owns the other part. In most countries, GM engages in ____________, but in China it engages in _______________.

Question

Quizplus · Accepted Answer

In most countries, General Motors engages in direct ownership, which means it wholly owns and controls its facilities. However, due to legal and regulatory requirements in China, GM must partner with domestic firms, which results in joint ventures where both companies own a portion of the venture. Therefore, the best answer is D - direct ownership in most countries and joint ventures in China.

General Motors Is a Multinational Company