Why do you think GE has invested so aggressively in foreign expansion?

Answer 1

In order for a company to grow at a rapid pace, it would have to take over other companies that are in financial jeopardy. GE saw a great opportunity to expand the company. Going international allowed the company to reach millions and millions of new customers that are located in these countries. GE knew that by going international that their revenue would increase by over 40 percent. I think that GE acted so aggressively because if they didnt then another company would have grabbed the opportunity and purchase the companies that were in trouble. Other companies could have also formed there and 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 businesses that were in financial trouble, GE came out as the heroes. They helped to save the jobs that these companies were offering and they helped their economy stay afloat. GE also acted so aggressively because they wanted the revenue that it would produce. I think that GE is trying to exploit lower wages. I feel that just like most American manufactures, they are always trying to find ways to reduce their costs. Moving to other countries would mean lower costs in labor hours for General Electric.