Thankfully, a solution has appeared. Foreign car parts makers are coming to the Yangtse River Delta to set up joint ventures. Shanghai GM Buick will depend on those parts makers for car parts. Perhaps the Buick plant will not worry about the agreement with the Chinese partner any longer. The agreement says that in the first year of production, the Buick plant must have 42% of locally made parts, and in the second year, the locally made parts rise to 60%, and in the third year, 80%.
1. What was the biggest issue in the negotiation between the Chinese government and General Motors?
A) Annual production of cars.
B) The location of Shanghai GM Buick.
C) Car parts and their shipment.
D) The price of domestic car parts.
2. How many car parts is a car made up of?
A) 23,000
B) 30,000
C) 50,000
D) 62,000
3. Who was the first supplier of the car parts to Shanghai GM Buick?
A) Baosteel steelworks.
B) Joint ventures in China.
C) GMs Tillsonburg.
D) The Buick plant in the Yangtse River Delta.
4. How does Shanghai GM Buick feel about the agreement on localization with Chinese partner?
A) Disappointed.
B) Hesitated.
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