Entry Mode (D): Occidental’s Accident

by: Robert E. Kennedy

Publication Date: May 18, 2009
Length: 4 pages
Product ID#: 1-428-807

Core Disciplines: International Business, Strategy & Management

Partner Collection:

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Teaching Note

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Emerging economies are attractive from a business standpoint, but political, economic, and cultural differences pose challenges to many foreign firms who choose to operate overseas. This mini-case examines the obstacles faced by the Occidental Petroleum Corporation when it entered China in the early 1980s.

Teaching Objectives

After reading and discussing the material, students should:

  • Analyze the critieria of China's open-door policy when it was instituted in 1979.
  • Describe the different strategic goals of the joint venture between Occidental and the Chinese National Coal Development Corporation.