Because the U.S. dollar is stronger than the Euro, it is advisable to purchase raw materials in Europe rather than the United States. This is because the materials would be cheaper to purchase due to the lower Euro value, but whether or not it would be lower cos...
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...as acquired in order to make G.E. more competitive in global markets and helps off-set the decline of oil prices (General Electric, 2015). Overall, due to the high value of the dollar, it is advisable to begin expanding G.E.’s global markets and in-house production options (General Electric, 2015).
In order to expand, G.E. should consider retaining profits from revenue gained in Europe because of government intervention (General Electric, 2015). By keeping this revenue in Europe, G.E. can avoid corporate taxes and use this revenue to stimulate growth in their oil and gas division (General Electric, 2015). If there is slow growth in the global market, G.E. may be subject to losses due to the 55% revenue share being attributed to the global market in 2015 (General Electric, 2015). This means it is the responsibility of the company to redouble efforts in global markets.
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