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Using GE as the sample U. S. company with global operations:
1.Discuss the firm's activities outside the U.S.
2.Identify which economic concepts, such as comparative advantage, apply to your firm.
3.Explain how these economic concepts can be used to address the firmâ??s problems and opportunities?
4.Identify which economic and political policies affect your firm and explain how they impact business decisions.
5.How does your firm use technology to strategic advantage?
6.Discuss the impact of globalization on the firm. Are there any effects on its cost structure, markets, currency risk, and overall strategy? Be sure to provide a definition of globalization in your answer.

Provide a good description of the company. They clearly identify the company, its products or services, the countries where it operates, and if available, include its total annual sales.

Clearly identify relevant economic concepts, define them, explain them, then apply them to the company you are discussing. For instance: The lowest cost producer (or seller ) has an absolute advantage. So if you choose this concept, you will need to explain why your company is the lowest absolute cost producer (monetary costs).

If you choose comparative advantage, you will need to explain the concept. A company has a comparative advantage in activities in which they have the lowest opportunity costs. Another way of saying this is that a producer's core competencies are those activities where they have a comparative advantage. Companies can choose to develop a comparative advantage in an area by investing in capital, human capital and in research and development in products and production processes.

There is political risk to doing business in some countries when there are conflicts, political upheavals, the breakdown of the rule of law and so on. If the company you have identified has faced these, then write about them.

Response is 1,822 words with 11 references.

Solution Preview

The response addresses the queries posted in 1822 words with references.

//This paper will include General Electric (GE), a U.S. based company which has been able to expand its operations globally. This paper will help to have an intensive knowledge about the company with its expanded operations. Further, it will help in understanding the economic concepts applied by the company to register the impact of globalization//

General Electrics (GE) is a United States (US) based multinational company with its establishment in New York. In the year 1890, Thomas Edison established this company with the avenue of his diversified business interests united under one unit called as Edison General Electrics. Later in the year 1892, it entered a merger, thereby forming an integrated unit called General Electric. With the latest records and journals, it is ascertained that GE is ranked the world's second largest organization on the basis of its sales, profits, assets and market value. It accounts for about 300,000 labor force around the world with its values. It has been able to diversify its operations globally with the comparative advantage over its rivals with the most effective utilization of resources (About Us).

It has been able to foster the market share with a timely adoption of technological changes in about 160 countries. Its products and services can be classified into GE electrical and electronic equipment, plastics, aircraft engine, advanced material, commercial finance, consumer finance, health care, energy, insurance solution, transportation, universal and consumer and industrial, etc. At the end of fiscal year 2009, it counts to about $ 156,783.0 M approximately (About Us).

//Till now we have learned about the company along with the products and services in which it deals. Now we will learn about its areas and the countries in which it operates.//

GE has been able to expand its operations worldwide with its activities in numerous countries outside US. With a motto to provide best health care services, it has coordinated its efforts with the experts and technological advancement. As a result, it is rendering services in Africa, Canada and many other countries around the world. In Northern Asia, with the localizing strategy, it has been able to expand its operations in Chinese, Japanese and Pakistan market to improve its infrastructural business. In the South East Asia, it has entered to provide the avenues of advance technology with establishing hospitals in Malaysia, energy and water resources in Philippines, and aircraft in Vietna. It is grasping new investment opportunities in New Zealand, Eastern Europe, Russia, Middle East, North America and Latin America, etc. (World Wide Activities, 2010).

//Above section has helped to have knowledge about the company and its operation across the nations and now we will learn about the economic concepts applicable to GE//

The economic concepts relate to the firm's advancement and innovation in its product and services to fulfill the ultimate needs of the customers and acquire their satisfaction, which means making the best use of available resources with strategic decisions to have alternative options in the process to achieve the predetermined goals and objectives. All the efforts of the firm are diverted to have production and distribution in order to earn revenue. It means ...

Solution Summary

The response addresses the queries posted in 1822 words with references.