Globalization at General Electric

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Globalization at General Electric
Chapter 1 p.g:36
Why do you think GE has invested so aggressively in foreign expansion? What opportunities is it trying to exploit?
GE has invested aggressively in Globalization because the company has realised there is much more than shipping products in foreign countries. The need to invest in globalization to GE is made simpler by remaining committed to guaranteeing that the capabilities and relationships in the market where one needs to succeed are strong enough for the company to invest.
With this offensive investment, the company’s CEO, realised that the European Economy had a weak point in the year 1989 to 1995 which he took advantage of and invested about $17.5 billion in European market. With these amounts, half went to the acquisition of 50 new companies.
What is GE trying to achieve by moving some of the headquarters of its global business to foreign locations? How might such moves benefit the company? Do these moves benefit the United States?
In acquiring globalisation in Latin America, the unpredictability of the economy worsened during the collapse of Mexican Peso. This made GE gain increased advantage to buy even more companies. In 1997 and 1998, Asia went in to an economic crisis with the currency going into turmoil. This made it easy for GE to acquire opportunities in Japan and other Asian countries. In the end, the company was in a position to attain 40% of its revenues from global sales with an up to 20% increase from 1985. Increasing sales, increasing market share, reduction of budgets and acquiring economy of scale are some reasons why GE went global.
In moving some of the headquarters from United States, GE is trying to escape the sluggish domestic spending in US hence turning more of their focus in overseas to get hold of the increasing demand for its products. The current state of the US economy is uncertain making it worth the while for multinationals to shift some of their headquarters to other... Read Full Essay

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Impact of Globalization on Indian Economy

The novel Tale of Two Cities of Charles Dickens begins with a piquant description of the contradictions of the times: It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness; it was the epoch of belief, it was the epoch of incredulity; we had everything before us, we had nothing before us

At the present, we can also say about the tale of two Indias: We have the best of times; we have the worst of times. There is sparkling prosperity, there is stinking poverty. We have dazzling five star hotels side by side with darkened ill-starred hovels. We have everything by globalization, we have nothing by globalization.

Though some economic reforms were introduced by the Rajiv Gandhi government (1985-89), it was the Narasimha Rao Government that gave a definite shape and start to the new economic reforms of globalization in India. Presenting the 1991-92 Budget, Finance Minister Manmohan Singh said: After four decades of planning for industrialization, we have now reached a stage where we should welcome, rather fear, foreign investment. Direct foreign investment would provide access to capital, technology and market.
In the Memorandum of Economic Policies dated August 27, 1991 to the IMF, the Finance Minister submitted in the concluding paragraph: The Government of India believes that the policies set forth in the Memorandum are adequate to achieve the objectives of the program, but will take any additional measures appropriate for this purpose. In addition, the Government will consult with the Fund on the adoption of any measures that may be appropriate in accordance with the policies of the Fund on such consultations.

The Government of India affirmed to implement the economic reforms in consultation with the international bank and in accordance of its policies. Successive coalition governments from 1996 to 2004, led by the Janata Dal and BJP, adopted faithfully the economic policy of liberalization. With Manmohan...

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