General Electric’s Joint Venture

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General Electric’s Joint Venture Yvonne Diekvoss Marian University General Electric’s Joint Venture According to the Investopedia, a Greenfield venture is a project that lacks any constraints imposed by prior work. The equivalence of this would be to build on Greenfield land where there isn’t anything to remodel or demolish an existing structure. Green field investments occur when multinational corporations enter into developing countries to build new operational facilities like factories and/or stores. Developing countries often offer prospective companies like General Electric; tax-breaks, subsidies and other types of incentives to set up green field investments. This is a foreign direct investment when a parent company starts a new venture. The Government won’t step in because they see this as a positive position in underdeveloped countries. It will create jobs, knowledge, and technology is gained to boost the country's human capital (as cited by Investopedia et al., 2007). General Electric is a parent company; therefore this will be a long-term reputable business that will create jobs. General Electric didn’t always favor joint ventures. They had always been noted as being the sole ownership of a corporation. The New York Times stated that if GE were to run a business they needed to run the business and to be in total control of it, but in the past few years they have shown an ever greater willingness to hook up with other companies, even if it meant taking a minority position. They had been just buying smaller business and turning them into General Electric, but now they have turned. They have realized that taking on the little companies and partnering with them, makes the market more diverse and their able to spread both risk and capital around. After the 2008-2009 global financial crises, GE financials did crippled; its share price went to

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