GE has increasingly become a global corporation over the past few decades. It now earns over 40% of its revenues from international sales, a percentage expected to rise to 55-60% by 2012. During the 1980s-1990s under Jack Welch, GE was an American company doing business abroad. Now under Jeff Immelt, GE is moving towards becoming a truly global corporation by establishing headquarters in foreign locations to be closer to customers and exploit lower costs and cultural understanding abroad. This allows GE to better understand local markets, customs and avoid potential missteps while internationalizing its senior management ranks.

1. 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. 2
By GE moving some of it’s headquaters to foreign countries they are trying to acheive a
closer relationship with the people & government of the country.In many culture like China it
is necessary to have great level of cultural sensitivity in order to be successful.This is very
difficult for outsider to obtain , so by having a local office you can gain this by bringing

2. people of that culture into the company. By getting to know culture & customs of the country
GE would be less likely to make marketing mistake.Making a mistake of any size can be
disrespect to the people of the country & cause them to boycott company’s product.
Moving some of it’s headquaters to foreign countries the main benefit is it gives opportunity
to get closer to customer & can able to know culture and customs of the local people.Another
benefit of moving company’s headquaters to foreign country is that people are likely to buy
& use a product that is made with in their country.The initial impact of moving some of it’s
headquaters to foreign countries would hurt the local economy because of the immediate job
loss.
I don’t think it has benefits for the United States when GE moved to different countries .The
main goal is to have benefits for the internationalization of the company & to be closer to its
customer.
Question:3-What is the goal behind trying “internationalize “the senior management rank
at GE ? What do you think it means to “internationalize” these rank?
Answer to the question NO. 3
GE is trying “internationalize “the senior management rank, they has goal behind it. They
want to reduce deep understanding of local language and culture which is often critical. I
think these rank “internationalize” means to make international or to place or bring under
international control. In our case study I read that GE internationalization of their
management rank. One of their activities to internationalize is increasingly traveling overseas
for management training and company event.
Question:4- What does the GE example tell you about the nature of true global businesses?
Answer to the question NO.4
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. The General Electric example tells me that the nature of
true global businesses is only to make as much money off of the people as humanly possible
to do so.