International expansion of Marcopolo (A): Adventures in China

This case provides an opportunity to discuss the internationalization process of a very successful emerging market multinational firm from Brazil and the specificities of entering a psychically-distant market, China. The case describes the internationalization process of Marcopolo, the largest Brazilian manufacturer of bus bodies, and describes the firm's initial steps in China and the challenges faced. Before its entry in China, Marcopolo exports had not reached the largest markets of Asia and Eastern Europe. The licensing contract signed by Marcopolo with Iveco-CBC, a joint venture between an Italian firm and a Chinese state company, did not permit Marcopolo to have its own plant or to export to China until 2007. However, by 2005 the time came when the company had to make a decision on whether to continue licensing or to invest in a plant in China.