Global Business Forum, BA 545

Thanks for your speech today, Yale.
I really enjoy it. Just one question,

From your past experience of doing projects in China, do you think either the government officials or the businesspeople welcome your idea of the clean energy use and are they going to consolidate it or they just give it some thoughts without action? Thanks

Yale,

Thanks for coming in to talk to our class.

I have a question regarding demand for diesel fuel in China as well as the United States. With recent alignments in diesel emissions regulations between nations, it seemed as though diesel cars and trucks would become more and more poular in the near future.

These new emissions regulations, however, have caused the prices for vehicles equipped with diesel engines to become significantly more expensive than they used to be. Additionally, diesel fuel prices are now higher than prices of gasoline.

Do you think that the advantages of diesel, like fuel economy, will be able to overcome these negatives and drive demand higher for diesel cars and trucks?

Thanks,
Phil Hines

I thought that Yale’s comments about the cautiously optimistic stance he has taken as he explores the possibilities of his business in China were particulary enlightening. Whereas he spoke about the exceptional rate of return possible in China, he also spoke of the enormous hurdles and barriers that get in the way of success there. My question to the class and Yale is how are investors (VCs, potential acquirers, etc) quantifying the risk premium of projects and business plans taken in China? In other words, what is the “penalty” assessed by investors on the project’s IRR when they evaluate business plans that focus a majority of their growth in China?

Hi Yale,

Thank you very much for coming to discuss your experiences to our class. I really enjoyed your incorporation of stories into the lessons.

My questions relate to special conditions and favorable treatment within China due to the Chinese Department of Defense being your customer. Are there any particular qualifications you must possess or requirements you must meet to serve the Chinese DOD, or, on the other hand, any restrictions? Also, do you think you receive any preferential treatment from suppliers, or perhaps better pricing agreements from suppliers, because of the DOD connection?

Again, thank you!