----------------Abstract---------------------

In this thesis, we examine the impact of a Chinese WTO membership on the construction equipment industry, and what opportunities this might imply to a foreign MNC. To do this we take an external perspective of this exogenous force with the specific case company Volvo Construction Equipment and the company's strategic decision to do a greenfield investment in the market. The combination of three identified theoretical frameworks complete the scenario process. The theories of `Web of interdependencies', transition theory and the institutions network model complete a dynamic perspective which provides us with a framework where the impact from an external force on our case company can be seen. Scenario planning enables the decision makers to view the strategic decision in the light of each scenario. The logic of our scenarios builds dichotomies, which display the extremes of China and capture the country's complexity in a dynamic environment predicting the pathways. We have created four scenarios from this framework, which represent specific opportunities and threats to the MNC by searching for factors that ultimately determine the course of the future.