"American Outsourcing" the Impact of Globalization on the Way Organizations Conduct their Business Overseas;The Case of General Electric

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The concept of outsourcing is not new, especially in the corporate world. It has been going on from the 1900s till date. The basic idea behind outsourcing is to fully utilize one’s competitive advantage to gain greater market share, increased productivity and more profits. Globalization is the integration of business activities across geographical and organizational boundaries. Globalization is doing business with a worldwide focus rather than doing business in an international market with the focus from a home-country viewpoint. (Goldin and Reinert, 2007). Globalization is a mixture of international, offshore and global activities and involves a general progression from the domestic to the global. (Cable, 1999).Thus countries like America and other developed countries outsources many of its white and blue collar jobs to third world countries in hopes of gaining greater amounts of profit and market share. This report evaluates the strategies adopted by the General Electric during the recession and the primary causes for outsourcing, starting from monetary gains, intellectual rights, political stability, allocation of resources at cheaper rates and so much more