2 management - School of International Business and ...

Günter S. Heiduk
Figure 2c | Share of Total Passenger Car Sales in China by Domestic Manufacturers in 2010
Source: China Association of Automobile Manufacturers (CAAM).
Figure 3 | Chinese Companies in FORTUNE Global 500 List, 1998-2011.
At first glance, globalization offers a promising solution. Countries in Central and Eastern Europe,
Asia and Latin America perform high economic growth rates without (currently) suffering from a
dramatic increase in labor costs. These countries are highly attractive with respect to production
locations as well as future markets. However, this attractiveness has its price. The challenges of
globalization constitute new risks that on the one side can be mitigated by collecting experiences,
but on the other side increase rapidly when exposed to unexpected developments. The complex
variety of challenges can be classified in four core categories:
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