Question 1: how did outsourcing work to Wipro improve GE’s ability to compete in global economy? Does such outsourcing harm or benefit the American economy?

Firstly, the strategy that GE used to enter Indian market is that it made a joint venture with Wipro to establish Wipro GE Medical System. It’s a smart step of GE to have entry into new countries in the developing region and specifically the market which had the second largest population in the world. A joint venture entails establishing a firm that is jointly owned by two or more otherwise independent firm. It’s also a strategy to enter a new market, excluding acquisition, merger, Greenfield investment… Why did GE choose this strategy?
GE can receive benefits from a local partner’s knowledge of the host country’s competitive conditions, culture, language, political systems and business systems. While GE provided technological know-how, the local partner – Wipro provide marketing expertise and the local knowledge necessary for competing in India. Moreover, GE could share their costs or risks with Wipro. GE did not need new facilities, bureaucracy fee to establish new firm in India but saving their cost to continue using land, labor, energy and available customers in India which was property of Wipro. And GE faced a low-risk of being subject to nationalization of other forms of adverse government interference.
Secondly, GE can utilize maximum human resources in India. India had a cheap source of talented engineers and programmers. There, it has a technology-oriented education, so India possesses a solid base of technology-focused universities and colleges that turn out many engineers every year. On the other hand, Indian workers do not tend to demand too high a wage rather than those in the United States. In general, software programmers in the United States who has two-to-four-year experience require