Skip to comments.American Companies Head East For Growth
Posted on 11/01/2008 1:29:31 PM PDT by SeekAndFind
There aren't many things you can say for sure about the future amid the global financial meltdown.
But here's one: All-American companies, from General Electric (nyse: GE - news - people ) to General Motors (nyse: GM - news - people ), are going to be looking halfway around the world to China and India as their best shots for improving profits in the coming year.
With the American, European and Japanese economies hitting the skids, China and India are the only fast-growing countries big enough to make a difference to most companies' bottom lines. That's where multinational companies will be placing their emphasis.
Just do the math: U.S. gross domestic product is expected to shrink by 0.8% in 2009, while China will grow at 8.8% and India will grow at 6.6%, Citibank predicts. Asia as a whole is expected to grow by 6.3%--far faster than it did during the Asian financial crisis, when regional growth slowed to 2.1% in 1998.
Established companies have already saturated the big U.S. and European markets and are fighting fiercely there to try to lose as little money as possible during this autumn's hard landing.
Companies from all different walks of life have set their sights for growth on Asia. McDonald's (nyse: MCD - news - people ) plans to open 125 outlets in China in 2008, 18% more than the company opened last year in China. Software company CA (nyse: CA - news - people ) announced in October that it would spend $30 million to expand its research and development facility in Hyderabad, India. French hotelier Accor plans to triple its hotels in China, Macao and Hong Kong by 2010, and Intercontinental will manage six new hotels in China.
(Excerpt) Read more at forbes.com ...
A company has to do what a company has to do. I see the job market really going in the toilet once all American workers are FORCED to join a union and turn their paychecks over to a bunch of Chicago union thugs. We haven’t seen hard times in this country yet.
Who can blame these corporations?
Apparently a majority of Americans would rather vote themselves money than work for it.
Don’t let the door hit ya where the good Lord split ya enjoy having slave labor............jerks
That is why taxing corporations even more is bad for the USA. That is why Obama would be an utter disaster. Additional taxation on small businesses assures lay offs.
American companies invest over 13 trillion overseas...because of immense taxation in the USA.
Wake up. Obama is chasing away capitalists.
GE owns MSNBC doesn’t it?
Good riddance... dont come back... US wont buy your products... Good luck in China.
Don’t hire ANYBODY from Chi town
Chi town meaning Chicago
Well, they sure as heck aren’t going to grow in this socialist haven.