The tipping point has come and GE (NYSE:GE) says that more than 50% of its sales will be international this year. The company, quoted by Reuters said "business in emerging markets was growing at more than twice the pace of developed markets and was likely to expand by 20 percent a year for the next several years."
GE is assuming that its sales in the US will actually slow while revenue in India, Russia, China, and other large overseas markets will pick up. Most of these emerging markets are improving their infrastructure which plays in GE's strength in industrial and infrastructure construction and management.
But, the news is double-edged. Governments in many developing countries are much less stable than they are in the . And, in markets such as Russia, Nigeria, Indonesia, China and Saudi Arabia, totalitarian governments may not elect to let companies pursue unlimited growth. Venezuela recently pushed out several international oil companies and there is no reason to believe that this kind of behavior will be isolated to that country
Increasing business in the developing work is as much about diplomacy as it is about products and services. GE may want to hire some people from the State Department.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
10-01-2007 @ 1:10PM
Dorothy O'Reilly said...
It upsets me to read that 50% of GE's business will go overseas. Will most of the products be made by "under-paid" workers?" THEN, COME INTO THE USA TAX-FREE UNDER THE FAIR TRADE (HA!) AGREEMENT.
10-01-2007 @ 3:00PM
Tattletale said...
It has to go someplace.......God knows it isn't doing a damn thing as it stands. I have read perhaps they have their fingers in too many pies. Think on that. Also...their media branches are not doing that well. Shareholders are waiting....perhaps your great grandchildren will benefit from the stocks you buy. Think on that, too. Their is not a rush on GE.
10-03-2007 @ 8:24AM
lynn D said...
Think long- term and you're OK... Understand World Markets and see this stock continue to grow at 10% + a year for 15 years... but ony until the " World economy " stops paying their bills. Too many political issues that will be resolved by the " New China's " and " New Venezuela's " with corrupt Leadership deciding who they will do business with, and even BIG GE has NO way to combat this fact.