GM entered China in 1997 through a joint venture with Shanghai Automotive Industrial Corp.(SAIC).Which of the following factors best contributes to the fact that the Chinese market already accounts for 25 percent of GM's total revenues?
A) Chinese workers cost only a fraction of what U.S. workers do.
B) The company operates a larger number of assembly plants in China than the U.S.
C) The China operation sells more vehicles while employing twice the number of employees.
D) GM's China operation has never been cost-competitive.

Question

Quizplus · Accepted Answer

As mentioned in Strategy Highlight 10.1, today, the Chinese market already accounts for 25 percent of GM's total revenues. Chinese workers cost only a fraction of what U.S. workers do, and GM is not weighed down by additional health care and pension obligations.

GM Entered China in 1997 Through a Joint Venture with Shanghai