Zhiying Liu, Mengxia Zhang
Ivey Publishing (W17459-PDF-ENG)
July 26, 2017
In 2016, Midea Refrigerator was one of the leading Chinese refrigerator manufacturers and exporters. Despite its large global product market, the company’s development stalled. High export costs had become a disadvantage. Fierce global competition led Midea Refrigerator to choose Foreign Direct Investment (FDI) as the next strategic move, and China’s One Belt, One Road initiative offered an opportunity for international expansion. The Midea Refrigerators manager had to determine which of Russia or India (two countries linked to China by the new initiative) would be the best options to launch the company’s FDI. It also had to decide which FDI model (new investments, acquisitions or joint ventures) was the best option for the chosen objective.
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