To JV or Not To JV? That is the Question (for XTech in China)

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XTech, a leading manufacturer of metal parts for the telecommunications industry, is being pushed by its large equipment vendor customers to establish a manufacturing operation in China. CEO Reinhold Hesse is debating several options: establishing a joint venture, contracting with a local partner, or setting up a wholly owned enterprise. Hesse must prepare his recommendation to the management team, which includes owners Jim and Debby Sharpe.
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