Define the four basic predispositions MNCs have toward their international operations. 4. Wilsten Inc. has been approached by a Japanese firm that wants exclusive production and selling rights for one of Wilsten's new high-tech products. What does Wilsten need to know about Japanese bargaining behaviors to strike the best deal with this company? Identify and describe three. 5. Please comment on the following report titled “China Tech Firms Pursue Growth in Brazil” by Yun-Hee Kim on June 6, 2012. g-market giant Brazil to seize on growing demand for personal computers and smartphones in South America’s biggest economy.
From Lenovo Group to telecommunications giant ZTE, cash-rich Chinese hardware makers are seeking to boost their market share globally as demand cools at home. They are looking at both buying firms abroad in countries such as Brazil, or setting up their own manufacturing plants there. Analysts and industry experts say more tech deals are on the horizon. Brazil has a fast-growing middle class whose use of smart TVs and smartphones is quickly rising. Chinese companies have the know-how to produce electronic devices at lower costs. There is every opportunity now for Chinese companies to work towards a global empire by adopting investment patterns that position well in the economies which are the most promising in terms of future growth,” such as Brazil, said Connie Carnabuci, Asia co-head of telecoms, media and technology practice at international law firm Freshfields Bruckhaus Deringer in Hong Kong. “Technology and telecommunications happens to be an area where China has well-established export players such as ZTE and Lenovo, so the synergies are obvious. Lenovo, the world’s second-largest PC maker by shipments after Hewlett-Packard, is interested in working with “all the players” in Brazil when it comes to acquisitions, the Chinese PC maker’s president for Asia-Pacific and Latin America, Milko Van Duijl, said in an interview. China is still Lenovo's biggest market but the personal-computer maker has big plans for its Latin American business as global turmoil threatens profits. The WSJ's Deborah Kan speaks to Milko van Duijl, Lenovo's president of Asia Pacific and Latin America.
Not every deal has gone smoothly, however. Lenovo’s pursuit of Brazilian computer-hardware maker Positivo Informatica ended in December 2008 without a merger deal. The companies didn’t provide a reason for why talks fell apart. Mr. Van Duijl declined to comment when asked whether Lenovo might reconsider a bid for Positivo, but said that acquisitions would help it get to be the top seller of PCs in Brazil, from its current No.? 9 spot. Officials at Positivo couldn’t be reached for comment.
Meanwhile, ZTE is investing $200 million over the next four years in a high-tech industrial park in Sao Paulo that will house the firm’s first research-and-development facility in Latin America. It will also include a production plant, a training center and a logistics center. For ZTE, building a presence in Latin America is critical to its global ambitions, as it has faced political opposition to its plans to expand in the U. S. and Europe over concerns about ties to the Chinese government, and in India over official security inspections for network equipment from China.