Japanese and European engineering companies entered China to participate in building the world's largest network of high-speed trains worth billions of dollars.Companies such as Kawasaki Heavy Industries (Japan),Siemens (Germany),and Alstom (France)were joint-venture partners with domestic Chinese companies.These firms now allege that the Chinese partners built on the Japanese and European partners' advanced technology to create their own,next-generation high-speed trains.This example best highlights the _____ that firms can experience when expanding overseas.

Question

Quizplus · Accepted Answer

This example highlights the intellectual property exposure that firms can face when expanding overseas. The issue of protecting intellectual property in foreign markets also looms large. When required to partner with a foreign host firm, companies may find their intellectual property being siphoned off and reverse-engineered.

Japanese and European Engineering Companies Entered China to Participate in Building