The case of the building material sector in China

Introduction There is a trend to do business internationally recent years. In order to diversify the business further and compete with the Multinational Enterprise (MNE), Hong Leong Group (HLG) should expand its business internationally, especially the Emerging and Transitional Economies. However, to enter such frontier markets, there will be some risks and uncertainties accompanying this expansion. The purpose of this report is to do an analysis of the emerging and transitional economies and find new …

…eye on the market trends and government policies. In the short run, joint venture is an appropriate market entry mode for HLG. It should follow the issues just mentioned above. In the long run, in order to gain full control over the decision making and avoid conflicts with partners, wholly owned enterprise is advisable. But choosing the wholly owned enterprise mode must be at the base of the full understanding of the characteristics of China.