In material procurement, GE’s global supply chain does business with over 500,000 suppliers across thousands of entities in more than 100 countries, deriving over $1 billion in savings on its foreign purchases. On the human capital side, General Electric has established global research and development (R&D) centers in Shanghai, China; Munich, Germany; Bangalore, India; and Rio de Janeiro, Brazil. By sourcing intellect globally, GE has three times the engineering capacity for the same cost. For Medical Systems, the ability to produce in low-cost countries has meant bringing to market a low-priced CAT scanner for $200,000 (most sell for $700,000-$1 million) and still earning a 30% operating margin.