GE Healthcare developed a portable, inexpensive ultrasound device for the emerging Chinese market. It expects to sell the device in the United States at a price cheap enough for every physician, paramedic, and emergency room nurse to purchase. This is an example of
A)total wage costs and indirect costs.
B)risk reduction.
C)reverse innovation.
D)optimization of value-chain activity locations.

Question

Quizplus · Accepted Answer

A number of firms have seen the need to develop technologies and products that are appropriate to developing markets, only to find that these innovations are valuable in their home markets as well. Reverse innovation is a motivation for international expansion in which new products developed by developed-country multinational firms for emerging markets have adequate functionality at a low cost and often are marketed later to developed countries.

GE Healthcare Developed a Portable, Inexpensive Ultrasound Device for the Emerging