Explain the selected theories, and then evaluate GEH’s reasoning.
Markets in developed economies are approaching saturation level. Therefore, MNCs are searching for new untapped markets in emerging countries such as India and China. Since the healthcare industry will continue to grow in the future due to the size of the global population and its age composition, General Electric Healthcare (GEH) is trying to capitalize on these trends. It is expanding its operations and development of new drugs and manufacturing of the medical equipment in India and China.
Read the following articles:
• At least one peer-reviewed article related to the trade theories in general as well as for China and India
• Articles related to the human resource management for MNCs, cross-cultural management, expatriate training, and expatriates’ success/failure in overseas assignments
• Articles related to GEH
Then, respond to the following:
1. Select two trade theories that best explain why GEH expanded its operations of developing new drugs to India, and manufacturing X-ray business to China.
2. Explain the selected theories, and then evaluate GEH’s reasoning.
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