Globalization at General Electric

Abstract

General Electric, the largest industrial conglomerate in America founded by Thomas Edison, produces a range of goods and services including home appliances, jet engines, power generators, medical equipment, and television broadcasting. Over 40 percent of its revenues today come from international sales, and it is expected that by 2012, some 55-60 percent of its business will be international. During the 1980s and 1990s, when General Electric was led by Jack Welch, the company was an American company doing business in foreign markets. Today, under the leadership of Jeffery Immelt, General Electric is moving toward becoming a global corporation.

Question:1-Why do you think GE has invested so agressively in foreign expantion?What opportunities is it trying to exploit?
Answer to the question NO. 1
I think GE acted so agressively because if they didn’t then another company would have grapped the opportunity & purchase the companies that were in trouble.Other companies could have also formed there & that would have made it harder for GE to establish their business in other countries.Some companies may object to a foreign company trying to establish a company on their land but by buying out the business that were in financial trouble, GE came out as the heroes.They helped to save the jobs that these companies also acted agressively because they wanted the revenue that it would produce.
I think that GE is trying to exploit lower wages. They are always trying to find ways to reduce their cost .Moving to other countries would mean lower cost in labor hours for General Electric. Question:2-What is GE trying to acheive by moving some of the headquaters of its of its global business to foreign location?How might such moves benefits the company ?Do these moves benefit the United states?
Answer to the question NO.