The Effect of Trade Protection on Global Value Chain: A Case of Automobile Industrial Cluster
Product Number：
EN_2020JJYJR_2347
Page Views：
656
CaseName：
The Effect of Trade Protection on Global Value Chain: A Case of Automobile Industrial Cluster
Authors：
Gu Kejian, Jiang Lingduo, Huang Yu
Author Affiliation：
Renmin University of China
Enterprise/Organization：
China Association of Automobile Manufactures
Industry：
Others
Discipline：
Economics & Finance、International Business
Scale：
Large
Language：
English
Type of Case：
Decision Case
KeyWords：
Global value chain; Trade protection; Open economy
Abstract：
In China’s new era of transitional economy, the automobile industry experienced an unprecedented opening practice to embrace foreign direct investment (FDI) by establishing joint ventures to develop its automobile industry and build the capacity of product development, sales and corporate profitability in the domestic market. The expansion of FDI has embedded China’s automotive product development, production and sale with the complicated changes of global value chain. The application of trade policy instruments can not only affect firms’ financial cost variation or even financial strategy, but also affect a firm’s decision about the choice location and products and services, so it is an important strategic management issue. China is experiencing a new high-level development as an open economy, which requires China's automobile industry to actively respond to the changing trade policy environment, especially the diversified application of tariff and non-tariff measures, to achieve the transformation of China’s automobile industry and a new leap forward. As a self-regulatory organization, which regulates production and operation of finished vehicle (motorcycle), parts and automotive related products after a reform from government institutions, China Association of Automobile Manufactures is committed to investigate the changes of circumstances and industry trends facing China, reflecting interests and heterogeneous demands of the firms in the automobile industry. How to observe and summarize the deepening integration of automobile industry into global value chains and to react to the profound changes in the trade policy circumstance is a new issue facing China's automobile industry.
Intended Audience：
Undergraduate,EE,MBA,EMBA
Data Source：
Primary
Publication Date：
2015
Revision Date：
2020
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