Question: Read the following case study carefully and then answer the questions that follow:ABC Motors, a renowned foreign automotive manufacturer, entered the Indian market with high
Read the following case study carefully and then answer the questions that follow:ABC Motors, a renowned foreign automotive manufacturer, entered the Indian market with high hopes of capitalizing on the growing demand for automobiles. They decided to establish a manufacturing plant in India, hoping to tap into the vast Indian consumer base. ABC Motors faced the challenge of meeting the Indian government's strict conditions, which required a significant portion of their vehicle components to be sourced locally. This posed a logistical nightmare, as many specialized components were not readily available in the Indian market. The foreign company was accustomed to international standards, and there was skepticisms about the reliability of locally sourced materials and components. A few challenges ABC Motors will face they have to invest heavily in setting up local supply chains, which increased production costs, lead to delays in production. This, in turn, affected their ability to meet market demand and capitalize on market trends effectively. These added costs and dealing with the Indian government's bureaucracy and navigating the complexities added an additional layer of challenge. Delays in approvals and changing regulations further exacerbated the situation. This in turn made their vehicles less competitive in the Indian market.Qa Determine the specific nontariff barrier addressed in the case and clarify its mainpurpose for implementation. Qb Outline three strategies that ABC can develop to ensure the success of this transaction in Indian market
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