Emerging Economies
Emerging Economies and Globalization
Argosy University
October 29, 2013
Emerging Economies and Globalization Multinational corporations (MNC’s) are consistently looking for new unsaturated markets to tap into in optimisms of expanding their business and capitalizing on future industry trends. General Electric Healthcare (GEH) is one of these MNC’s trying to capitalize on the incessantly rising healthcare industry. In 1878, Thomas Edison founded General Electric (GE), which is the corporation that established GEH in 2004. GE was the first company to invent the household light bulb and has successfully ventured forwarded in the electric industry through its innovations and manufacturing of household appliances, lighting fixtures, light sockets, to founding one of the nation’s largest computer companies.
The company recently established GEH in 2004 to tap into the expanding healthcare industry and in 2005; GEH innovated and manufactured the world’s first high definition magnetic resonance (HDMR) system (“About Us”, 2013). GEH has recently expanded its operations into India and China; their India operation is developing new drugs for the healthcare industry and their China location is busy manufacturing X-ray equipment for the healthcare industry. This paper will discuss GEH business operations and the following:
Two trade theories that explain why GEH has expanded operations into India and China
An explanation of the trade theories and an evaluation of GEH’s reasoning of utilizing the theories
Potential pitfalls in GEH’s strategy
An evaluation of GEH’s human resource strategy in China and India
A proposal for training and preparing expatriates for their assignment overseas in India and China
Trade Theories
The two trade theories for discussion are Comparative Advantage and National Competitive Advantage.
Comparative Advantage Comparative Advantage was introduced in 1817, by David Ricardo in his book
Argosy University
October 29, 2013
Emerging Economies and Globalization Multinational corporations (MNC’s) are consistently looking for new unsaturated markets to tap into in optimisms of expanding their business and capitalizing on future industry trends. General Electric Healthcare (GEH) is one of these MNC’s trying to capitalize on the incessantly rising healthcare industry. In 1878, Thomas Edison founded General Electric (GE), which is the corporation that established GEH in 2004. GE was the first company to invent the household light bulb and has successfully ventured forwarded in the electric industry through its innovations and manufacturing of household appliances, lighting fixtures, light sockets, to founding one of the nation’s largest computer companies.
The company recently established GEH in 2004 to tap into the expanding healthcare industry and in 2005; GEH innovated and manufactured the world’s first high definition magnetic resonance (HDMR) system (“About Us”, 2013). GEH has recently expanded its operations into India and China; their India operation is developing new drugs for the healthcare industry and their China location is busy manufacturing X-ray equipment for the healthcare industry. This paper will discuss GEH business operations and the following:
Two trade theories that explain why GEH has expanded operations into India and China
An explanation of the trade theories and an evaluation of GEH’s reasoning of utilizing the theories
Potential pitfalls in GEH’s strategy
An evaluation of GEH’s human resource strategy in China and India
A proposal for training and preparing expatriates for their assignment overseas in India and China
Trade Theories
The two trade theories for discussion are Comparative Advantage and National Competitive Advantage.
Comparative Advantage Comparative Advantage was introduced in 1817, by David Ricardo in his book
References: About Us. (2013). General Electric website. Retrieved on October 23, 2013 from http://www.ge.com/about-us/building Burkitt, L. (2011, July, 226). GE bases x-ray unit in China. The Wall Street Journal. Retrieved from http://online.wsj.com/news/articles/ SB10001424053111904772304576467873321597208 Glinow, M. and Milliman, J. (n.d.). Developing strategic international human resource management: Prescriptions for mnc success. Center for Effective Organizations. Retrieved from http://ceo.usc.edu/pdf/G904166.pdf Gunawardan, P. and Khorchurklang, S. (2007, January, 1). An analysis of comparative advantage and competitiveness and other selected countries. International Journal of Business Strategy 7(1). Retrieved from http://www.freepatentsonline.com/article /International-Journal-Business-Strategy/178220109.html Hill, J. (2008). International business: Managing globalization (1st ed). SAGE Publications, Inc. Retrieved from http://digitalbookshelf.argosy.edu/books/9781452282428/S3.3/31 Kokemuller, N. (n.d.). Advantages & disadvantages of doing business in emerging markets. Small Business Chron. Retrieved from http://smallbusiness.chron.com/advantages- disadvantages-doing-business-emerging-markets-22725.html Kumar, S. (2013, October 25). India, Africa’s pharma. The Yale Globalist. Retrieved from http://tyglobalist.org/onlinecontent/blogs/india-africas-pharma/ Landsburg, L. (n.d.). Comparative advantage. Library of Economics and Liberty. Retrieved from http://www.econlib.org/library/Topics/Details/comparativeadvantage.html Laurentiu, P. (n.d.). The porter’s theory of competitive advantage. Retrieved from http://feaa.ucv.ro/annals/v7_2008/0036v7-030.pdf “What Are the U.S. and China’s Current Comparative Advantages”. (n.d.). China Global Trade. Retrieved from http://www.chinaglobaltrade.com/article/us-and-china-current- comparative-advantages