Read the case given below and answer the questions given at the end.

CASE STUDY – I

New United Motor Manufacturing, Inc. (NUMMI) is an automobile manufacturing plant in Fremont, California, opened in 1984 and closed in 2010. NUMMI was established at the site of a former GM site that had been closed two years earlier. The factory which NUMMI took over was built by General Motors (GM) and operated by them from 1962 to 1982. GM and Toyota reopened thefactory as a joint venture in 1984 to manufacture vehicles to be sold under both brands.

Questions

1. Why did Toyota prefer joint venture rather than exporting, to enter US market? What were the reasons for GM to enter into the joint venture and finally to discontinue it?
2. Why did GM select Fremont, California, automobile manufacturing plant for NUMMI?
3. What are the other modes of entry that Toyota could have selected to enter US market?