Huawei Enters the United States
(5 pages of text)
Huawei has attempted to enter and acquire assets in the United States, but there are issues involved in understanding foreign market risk and the political challenges of internationalization. The Committee on Foreign Investment in the United States (CFIUS) twice denied Huawei’s acquisition of a U.S. computer company. Huawei had to transform its company image and reputation, changing from a Chinese company with Chinese characteristics into a global corporation equivalent to Cisco Systems or Ericsson. This case encourages students to address the issues of internationalization in an incompletely open global market, the government intervention in markets and the broader issues that arise with the geo-political and geo-economic shifts of 21st century.
- To discuss examples of international risk and the potential barriers to foreign market entry.
- To understand how CFIUS plays a role in the U.S. market.
- To engage students in a debate about government intervention and market forces in the 21st century.
- To delve into possible options for Huawei executives to transform their company’s reputation and image from a Chinese company into an international company.
Information, Media & Telecommunications
United States, Large, 2011
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