The BA are looking at the global bu

The BA are looking at the global business-ue can increase our global business if we set up a joint venture in China. But the technology partner can't increase their business if we set up a joint venture in China.If we set up a joint venture China in China the technology partner wantsto to increase its business also, they are going to do some work, and of course want something for it. The BA is really powerless to push
those along.
To date the licensors have been paying for all the technology development which is the reason for charging a higher price for the components they are selling. Since the enterprise is divided into 5,000 profit centers and because each of these profit centers wants a profit when seling a component or product there have been some shortcomings in the coordination and cooperation between the licensors and the local Chinese subsidiary. The licensor in X-country makes the same breakers that the local ABB comPany does and faces the same problens with quality. For example, in Germany, they do not inform their licensee in China, who will also run into the same problem with quality in the near future. The problem is also discussed at the local ABB company, but if it suggests changes to the licensor, the licensor will evaluate on the basis of benefits to itself. Since they are going to invest their own resources, they are, of course going to invest in areas beneficial to themselves first, or else charge the local ABB company extra. The conse-quences are thus summarized aS follows:
We have had some things that would really help us here in China. But I don't even bother, because I know the reaction