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.
Background

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.

Directions

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:

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.
Explain the selected theories, and then evaluate GEH’s reasoning.
Explain possible pitfalls for such strategy from GEH’s perspective.
Identify solutions to the possible pitfalls for the strategy.
For each operation (India and China), evaluate GEH’s human resource strategy.
Identify how you would design training for preparing expatriates for their assignments to India and China if you were in charge of their training prior to the overseas assignment.


 

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