Marbella, Melch Yvan R. Ms.

Mae Lin Lactaoen

BSA 3A International Business and Trade

CASE STUDIES

 Can Google afford not to do business in China?

 With china having the second-largest economy in the world, it would be a
major opportunity missed if they do not gain access to this economy because,
this market would allow them to grow rapidly and have lower production.
However, due to strict political laws that goes against what the company is all
about, Google may opt not to engage in business with china for they may
suffer much more major losses if they ever continued their business there. The
Global Community after all, is very unforgiving.

2. Which stakeholders would be affected by Google’s managers’ possible decision to shut

down its China operations? How would they be affected? What trade-offs would Google be
making?

 Employees in China
 They would be losing their major source of income
 Managers
 Their strategies would be put into question
 Consumers in China
 They would be losing another player in their market
 Googles trade-offs would be:
o Brand reputation
 They would be able to protect their company’s image by leaving a
country that is well known on abusing their citizenry’s rights
o Security
 Protection from cyber-attacks or other form of espionage
3. Should Google’s managers be surprised by the China predicament?

 Chinese authorities are notorious for their hardline censorship rules with the
internet, the managers were very much aware of what they were getting into,
thus, shouldn’t be surprised at all.