Globalization and General Electric (Ge)
Question No 1:-
Why do you think GE has invested so aggressively in foreign expansion? What
Opportunities is it trying to exploit?
GE has invested so aggressively in foreign expansion because of the potential development that is possible. The United States is a prominent developed country, while other countries are still developing. This gives GE the possibility to expand their business by giving the country new products and opportunities to develop their economy. GE takes advantage of the economic uncertainty of foreign countries to move into the country at a lower cost. For example, when “Asia slipped into an ...view middle of the document...
Additionally, the company has had the advantage of increased revenues as a result of the dynamism of the Asian economies making it shift some of its jet engine headquarters to India and China who are the main purchasers of the same. Again, compared to the US market, the Asian market in china and India has huge investments in infrastructure mainly in Airports, Railways and power stations. With this advantage, analysts have it that by 2012, the company will generate 55 to 60 percent of international business. This is therefore a means of achieving the true multinational or global company image. Other reasons for such relocations are the increase in revenues
Through increased sales in the developing economies. These moves will benefit the states
Just in the form of newer designs in equipments and with new ideas.
What is the goal behind trying to“internationalize”the senior management ranks at GE? What do you think it means to“internationalize”these ranks?
The goal in internationalizing senior management ranks at GE is to better understand their markets. This will allow GE to have a greater amount of local knowledge, as well as knowledge of the local culture and language. These both will help tremendously when GE is doing business all over the world. I believe that Internationalize describes the process of integrating foreign culture, traditions, and knowledge into a company in order to give that company a better connection and understanding in order to do business. Internationalizing the high ranks means...