General Motors in China Analytical Essay

General Motors in China
An analysis of a potential expansion of General Motors into China.
# 117468 | 1,769 words | 9 sources | APA | 2009 | US

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This paper analyzes the opportunity for the General Motors company to globalize into China. The paper begins with an outline of the background of the General Motors Corporation and a description of the economic characteristics of China. China's national political economy, social environment and the transaction and translation costs for Chinese exporters are also discussed. The paper then examines the main competitors for GM and shows how GM can invest in the production of alternative vehicles to compete with their competitors. The paper comes to the conclusion that the economic characteristics of China provide a positive opportunity for GM.

Company Background
Characteristics of China
Political Economy
Social Environment
Transaction and Translation Costs
Potential Competitors

From the Paper:

"China's economic landscape has had tremendous growth in the last decade making it a key competitor in the global economy. Changes in the governmental economic policy, large market potential, and rich lower cost labor resources have paved the way for substantial foreign investment. These factors provide a positive opportunity for a large automaker such as General Motors Corporation (GM) to globalize in China. GM is considered to be one of the world's premier auto-makers. China's changes in the area of national political economy, transaction and translation costs, and social environment have provided a favorable environment for GM to set up business in China. However, challenges faced by China such as the abuse of energy and environmental resources, and the widening income gap between the social classes, also pose challenges to GM's business model in China. In addition, the auto industry in China is still in its infancy stages, with many competitors, foreign and national, vying for market share. GM will have to adopt a progressive and innovative strategy to successfully compete and establish a thriving business model for years to come."

Sample of Sources Used:

  • Bodeen, C. (2006, January 5). GM becomes top-selling foreign automaker in China. Retrieved March 05, 2009 from
  • Cabadas, Joseph. January 30 2008. GM Chief Financial Officer predicts U.S. auto industry down in '08. Retrieved March 16, 2009 from predicts-u.s.-auto-industry-down-in-08.html.
  • Christmann, P. & Taylor, G. (2001). Globalization and the environment: Determinants of firm self- regulation in China. Darden Business School Working Paper No. 01-15. Retrieved March 05, 2009 from determinants-of-firm-selfregulation-in-China.
  • General Motors. (2008). Sustainability and GM. General Motors Website. Retrieved March 16, 2009 from integrated_management/manage_structure.html.
  • Kwan, C. H. (2002). The Myth of Chinese Competitiveness: Are Low-Wages China's Strength or Weakness? Research Institute of Economy Trade, and Industry. Retrieved March 16, 2009 from

Cite this Analytical Essay:

APA Format

General Motors in China (2009, December 04) Retrieved April 19, 2021, from

MLA Format

"General Motors in China" 04 December 2009. Web. 19 April. 2021. <>