| Summary: | The following study seeks to identify the possible reasons why Joint Venture will gradually become wholly owned subsidiaries in China. To identify and research a framework and arrive at a proper conclusion for the research, this dissertation reviews various theories of FDI, theories of entry mode, and so on. The research method of this dissertation is a case study. There are two cases - P&G and Panasonic which have been discussed to address the reasons why there is such a change in tendency among foreign investment companies in China.
According to the analysis and findings, the majority of foreign investment companies have to meet various problems in Joint Venture, this is due to the fact the limitation of JV. In addition, the change of police and laws in wholly owned subsidiaries, and some Chinese local partners are not able to offer more useful support to foreign investment companies, these make joint ventures lose the favour in the Chinese market. Thus, foreign investment companies tend to use wholly owned subsidiaries in China.
The conclusion and recommendation are about give the wholly describe and evaluate this dissertation.
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