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in demand for copper based telecommunication products, political uncertainty, and currency volatility in certain developing markets. For example, the Venezuelan government recently announced intentions to devalue its currency and establish a two-tier foreign exchange structure. The impact for GCC will result in a one-time charge of 40-50 million in the company’s 2010 first quarter. In addition to the above mentioned macro-level trends, GCC must also consider worldwide underlying long term growth trends in electric utility and infrastructure markets, continuing demand for natural resources, alternative energy initiatives, and increasing demand for further deployment of submarine power and fiber optic communication systems.

In attempt to confront these worldwide challenges and increase global presence, GCC has engaged in a variety of recent acquisitions. For example, GCC’s recent acquisition of Chinese automotive and industrial cable products manufacturer, Jiangyin Huaming Specialty Cable Co. Ltd, represents the company’s initiative to expand throughout Asia. The company has even established sales offices in China and India to facilitate exports of specialized cables into those countries. Additionally, GCC’s 2007 acquisition of Plaza Cable Group of Companies, an Indian manufacturer of construction cable, is yet another strategic move the company has made to increase its global footprint. “This transaction, along with the recent acquisition in China, further our strategy of global expansion into economies that are building (or rebuilding) their energy infrastructure,” said Gregory B. Kenny, President and Chief Executive Officer of General Cable.

GCC must also consider various political environments across the globe when making decisions to invest. Since a countries leadership dictates the type of business operated, protection against expropriation, and the types of products produced and sold, it is important for GCC to carefully evaluate and form relationships with the governments of potential investments. For example, GCC’s 2008 joint venture with the North African power and construction cable manufacturer, Enica Biskra, allowed the company to form a partnership with the Algerian government in the privatization of the wire and cable industry. Not only does the company expect the initiative to boost economic growth and development, but to also contribute to other successful European and Middle Eastern acquisitions. Furthermore, determining whether the country is underdeveloped, emerging, or highly industrialized is going to have a large impact on the way GCC can do business. While the company’s North American and North African/European markets are for the most part highly industrialized, the fact that many of the ROW nations (once underdeveloped) are now emerging signifies future growth opportunities are right around the corner.

Finally, GCC must consider the impact of anti-global movements as many people in a variety of countries fear that globalization has detrimental effects on living standards and the environment. For example, when foreign direct investment firms repatriate profits, the result is a loss of global national allegiance. As falling trade barriers allow firms to move manufacturing activities to countries where rage rates are much lower; protests may result from the downward pressure on the wage rate of unskilled workers, environmental degradation, and the cultural imperialism of g