1.Why do you think GE has invested so aggressively in foreign expansion? What opportunities is it trying to exploit?
I think GE acted so aggressively because they saw a great opportunity to expand the company and if they didn’t do so, another company would have grabbed the opportunity and purchase the companies that were in trouble. In order for a company to grow at a rapid pace, it would have to take over other companies that are in financial jeopardy. Going international allowed the company to reach millions of new customers. The opportunities that they are trying to exploit are (1) the economic weakness in certain parts of the world with the aim of investing to the region, but in fact to acquiring companies, (1) to take advantage of economic uncertainty caused by the currency market collapse for the aim of purchasing or acquiring companies, (3) to help in process of development in under develop areas with the aim of profiting from it later
2.What is GE trying to achieve by moving some of the headquarters of its global businesses to foreign locations? How might such moves benefit the company? Do these moves benefit the Unites States?
GE strongly believes that to succeed internationally, it must be close to its customers. That’s why it builds or transfers its headquarters abroad.
The company might benefit from more attractive location, Tax advantages, Lower wages, well-educated labor force, Costs reduction, Industry of specialization, Foreign government invitation, Good infrastructure.
The USA can benefit from good reputation of American companies, can establish diplomatic relationship with foreign counties, there might be a potential influence on Gross National Product (GNP).
3.What is the goal behind trying to “internationalize” these ranks? What do you think it means to “internationalize” these ranks?
The goal behind internationalization is to get closer to its customers and have better knowledge of the local market, local culture and language of the country that they are doing business. Internationalize is the integration of the local market knowledge and application of cultural sensitivity approach through engaging their local managers in the managerial decision-making process.
4.What does the GE example tell you about the nature of true global business?
GE’s example tells us that the true global business is a business that is headquartered locally (in overseas) for the aim of getting closer to its customers. It exploits their local market knowledge as well as their local culture and language knowledge.
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