Case Study Analysis

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Summary
The main premise of this business proposal is to establish a 50/50 joint venture between Kuwait Al-Ghurair group and the China International Trust and Investment Corporation (CITIC). The joint business enterprise will engage in trading operations, and promote Chinese products in Kuwait and its neighboring countries. It will also aim in attracting other wealthy Arab investors to China's new investment industry. The chairman of the Al-Ghurair group, Mr. Essa Al-Ghurair presented the proposal and Mr. Simon Sun, the administrative assistant to the General Manager of Business Department and Mr. David Wu who had 15 years experience in import and export business, were working on the proposal. The Chinese ambassador to Kuwait, Mr. Fuchang Yang introduced Mr. Essa Al-Ghurair to CITIC and he worked hard to promote the Kuwait private sector to invest in China. Over the years, Mr. Al-Ghurair and Mr. Yang established a close friendship with each other and Yang personally favored full cooperation with the Al-Ghurair group. The main issue in the proposal is regarding the credibility of Al-Ghurair Company which was doubted due to the involvement of Mr. Essa Al- Ghurair's younger brother, Mr. Heshan Al-Ghurair in a stock market scandal. Though Mr. Essa Al- Ghurair has explained the reasons behind the involvement, Mr. Sun and Mr. Wu were not convinced due to the closeness in the relationship Mr. Al-Ghurair held with his younger brother. They questioned whether he was aware of his younger brother's activities and whether Mr. Essa was the man behind the scandal. On the other hand, Mr. Sun and Mr. Wu were concerned about the political implications for rejecting this deal because of Mr. Essa's close relationship with Mr. Yang. Also, as Mr. Essa was the first Kuwaiti investor who committed to investing on a large scale in China this proposal could be a possible breakthrough for China to attract more Arab investors. Analysis

The main issue in the proposal is whether the...
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