SUMMARY:
Cadillac’s global sales are increasing and it now sells more vehicles abroad than at home. Contributing to
this growth is the firm’s success in China, where it has grown to be the country’s fourth largest luxury
auto brand. Cadillac’s success is being supported by its decision to produce many of the cars in China to
avoid a 25% tariff on imports. The firm also modifies its products to accommodate local consumer
preferences, such as providing plush rear seats with high-definition TV screens, since many Chinese
buyers of Cadillacs use a chauffeur.
QUESTIONS:
Sample Solution