By 2016, Midea Refrigerator was one of the leading Chinese manufacturers and exporters of refrigerators. Yet despite its broad global product market, the company’s development was stagnant. The high cost of exports had become a disadvantage. Fierce global competition was driving Midea Refrigerator to choose foreign direct investment (FDI) as its next strategic step, and China’s “One Belt, One Road” initiative presented an opportunity for international expansion. The manager of Midea Refrigerator had to determine which of Russia or India (two countries linked to China by the new initiative) represented the best choice to start the company’s FDI. He also needed to decide which FDI model—greenfield investment, acquisition, or joint venture—was the best option for the chosen destination.
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