In Recent Years, Chinese Auto Companies Have Invested in Foreign

Multiple Choice

In recent years, Chinese auto companies have invested in foreign auto and auto parts companies. What is the major rationale for their investment?

A) They are trying to get a foothold in the U.S. and European auto markets.
B) They will learn from their acquisitions how to improve Chinese technology and product lines.
C) They have excess profits that cannot be easily invested in China.
D) The Chinese government prohibits them from investing in other Chinese auto companies.