Emerging Economies And Globalization Of India And China

1396 Words Feb 5th, 2016 6 Pages
: Emerging Economies and Globalization
There are many factors involved when a company makes a strategic choice to enter into a new market. These factors include strategic market position, resource availability, human capital, as well as financial gains and efficiencies. For General Electric Healthcare (GEH), the strategy was clear: “...to revolutionize the world’s health by improving the quality, access and affordability of care.“ (GE Healthcare, n.d.) For GEH, the position that they needed was clear, to find a cost effective way to meet their goal. And their choice was to expand their operations into India and China. Specifically, according to Kumar (2012), India is on the brink of an innovation boom where many companies like GEH are establishing operations due to the influx of talented human capital.
“...talent is going to be based out of India and China, and the largest growth markets are going to be based out of India and China, you have to confront the problem that your top management of the future is going to have to come out of India and China, because that 's where the product leadership is, that 's where the important market leadership is.” (Kumar, 2012)
Therefore, it makes logical sense that GEH made the decision to expand its operations into these two countries. The question now is to define the strategy and trade theory in which this decision was based as well as understand why these theories were used.
International trade theories are constantly changing due to…
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