See WilliamsonO., The Economic Institutions of Capitalism, The Free Press, New York, 1985, and R. Coase, ‘The Nature of the Firm' Economica, Vol. 4, 1937, pp. 386–405.
3.
BeamishPaul, Multinational Joint Ventures in Developing Countries, Routledge, New York, 1988, p. 121.
4.
Ibid., p.96.
5.
CKD (Completely knocked down) kits refers to the practice of exporting all or most of the parts of a motor vehicle for assembly overseas. Given that component sales to the BJC from AMC/Chrysler contribute profits to the multinational firm, it should be evident that book profits of the joint venture assembly operations need not be significant for the parent company to find the relationship worthwhile.
6.
BJC vehicles are allocated by the central government to various departmental organizations within the Chinese economy. Once designated, the unit must come up with the needed funds to purchase the vehicle(s) or the opportunity will be given to the next priority organization.
7.
VinesStephen, ‘China Continues Bailing Out Joint Venture Car Companies’,Automotive News, 26 March 1990, p. 8.
8.
An excellent overview of BJC's financial reporting system is in a paper written by Li Bolin and Wu Hong Lin entitled ‘Case Study of Accounting Work in Sino-Foreign Joint Venture: Beijing Jeep Corp’.
9.
The monthly base wage does not include bonuses or numerous food, housing, transportation, water and electricity and other special subsidies.
10.
‘Joint ventures in China: Inscrutable’,The Economist, 17 March 1990, pp. 92–94.
