Answer the following questions:

1. Can Google afford not to do business in China?

Google could have chosen not to work with the Chinese government, but it
decided against it since it is not what the firm wants to do. In order to eliminate
exceptions and prevent any region of the world from being blocked from search
engines, they made the decision to only follow Chinese government restrictions
but did so in favour of the Chinese people's interests rather than the company's.
Many businesses are attempting to conduct business in China because it is a
pristine market. China is booming, and Google cannot afford to neglect the
market or risk losing its position as the country's most popular search engine.
After Google China was shut down, Google abandoned one of the biggest
marketplaces in the world. The Chinese market is something that Google simply
cannot ignore. China attempted to steal user data while attacking Google.
Although Baidu has replaced Google as the market leader, the company is
tremendously profitable. Additionally, it has become a household name, going
beyond simple browsing.

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?

Earnings and losses on individual equities only affect investors who have
invested in Google. If Google does nothing, the impacted parties may not gain at
all or may be made partially whole for their losses. Since many of them are
anticipated to lose their jobs when the business is shuttered, employees are
among the stakeholders who will be most impacted when Google shuts down
operations in China. Because they will receive a smaller return on their
investment, shareholders will also be impacted. Chinese clients are served last.
Chinese consumers would be left without access to the well-known search
engine that links them to the rest of the world if Google were to stop operating in

1
China. By reclaiming control of China, one of the world's largest and fastest-
growing economies, by reclaiming the brand name, and by doing so, it was able
to shield China from additional cyber-attacks. Because it chose quality and
consumer protection above staying in China and earning enormous money,
Google lost China but still has users all around the world. Contractors are the
group most likely to be impacted by Google's decision to stop doing business in
China. The possibility of job loss exists.

3. Should Google’s managers be surprised by the China predicament?

The China scenario shouldn't shock management because it was a

possibility long before Google was formed. China makes decisions about what it
wants its people to know and what it wants the rest of the world to know, and it
does not want to stray from its rules and laws. When required, they use phishing
and hacking to stop any potential disturbance. Managers shouldn't be shocked.
Given how distinct and challenging it is to change Chinese culture, laws, and
methods of thinking, this outcome must have been anticipated by Google's
management. Google's management should be shocked by the situation in China
since censorship has perplexed them. Management didn't properly plan their
strategy because they first refrained from entering China. Additionally, China
hacks them and simultaneously compels Chinese sites to go offline. Because
China has strict internet censorship rules and because it has a repressive
government, the Chinese authorities were well aware of the risks.

2
 CASE STUDY NO 1

I. Introduction

Google's search engine is one of the most popular ones. Google does not
give regular consumers any discounts on products or services. They have the
capacity to distribute promotional content to a sizable global audience. To reach
these areas, search engines must adapt their search algorithms to take into
account certain cultural variations.

II. Summary of the Article

In 2000, Google, the most popular Internet search engine in the world with
its headquarters in the United States, started providing services there. For a
while, Google dominated the Chinese search engine business for a while before
losing market share. For a while, Google dominated the Chinese search engine
business for a while before losing market share. Chinese Internet users are
having a very difficult time accessing his website because of the government's
tight restrictions on online content. Baidu, a Chinese search engine business,
was China's biggest online search provider in 2005.

In reaction to Baidu, Google intends to introduce www.google.cn in China,

vowing to block websites with content that has not been authorized by the
Chinese government. In 2010, Google asserted that it was no longer able to limit
search results for Chinese services. According to Google, the action was
conducted in reaction to a cyberattack that was purportedly intended to gather
information on Chinese human rights advocates. Google asserts that U.S.
officials didn't discuss or involve any of its Chinese employees when they
decided to look into its operations in China. When Google offered mainland
China an infinite Simplified Chinese search engine, the Chinese government's
initial response was that it was "searching for additional information."

Google have re-evaluated their operations in nations with drastically

differing legislation based on their experience in China and other foreign markets.

3
III. Statement of the Problem

The most popular web search tool across all devices is Google Search
(also known simply as Google Search). The Chinese version of Google.com,
created by Google LLC, is slow and unreliable and is only accessible 10% of the
time. This is probably because Chinese-certified ISPs are being closely
examined. The corporation gained access to a sizable market with Google's foray
into China, but it also created a number of ethical conundrums. The most used
search engine in the world, Google, might refrain from working with the Chinese
government.

Google may still offer services and cut the business' losses even without
entering the Chinese market. Google might potentially choose to expand into
other markets, like Japan. Google is well known for being more than just a
search engine, which enables Google to maintain a large presence in China
through various channels. The People's Republic of China unquestionably has a
significant impact on the current global economy. The second-largest economy
and the West's most significant trading partner, China, has a GDP of US$8.765
trillion.

Given that China is a developed nation and one of the BRICS to take into
account today, Google couldn't even afford to discontinue its operations there. In
light of the fact that many tech-focused businesses are growing like start-ups,
Google needs to be present in China in order to play a significant support role for
these start-ups. Because of this, Google's entry into China has given it access to
a sizable market, enabling it to expand quickly and benefit from lower production
costs. However, the market is large and has numerous issues, such as: stringent
political constraints that could make it difficult to establish Google 

Hardworking staff will lose their employment if Google decides to close its
headquarters in China, and Chinese users won't be able to access the

4
uncensored version of Google that supports their practice of free expression. The
efforts of project leaders will be useless if their plans are questioned.

IV. Learning Insights

Google is considering whether to continue operating under state

compulsion in China or to lift the censorship on Google.cn. Respect for Chinese
authorities, discussions of human rights, and battles over freedom of expression
all play a significant role in this decision. Many factors need to be taken into
account in order to address this issue, including maximizes riches, defer to
Chinese authorities, or make decisions more consistent with Chinese ideals and
beliefs.

Google was able to successfully enter the Chinese market thanks to its
dedication to its objectives and adherence to Chinese government laws. As an
alternative to the idea of aligning its corporate code with Chinese cultural
standards, this gave the corporation major potential to boost shareholder profits.
Before opting to enter the Chinese market, Google had to weigh a number of
factors, including whether it would be lucrative to operate in a nation with tense
business-government relations. If anything, Google's media and spokespeople
ought to have admitted the negative publicity that would have followed their
defiance of Chinese government regulations.

V. References

https://biz.libretexts.org/Sandboxes/Team_Sandbox%3A_PGCC_MGT1010/
MGT_1010/07%3A_Book-_International_Business/7.01%3A_Introduction/
7.1.01%3A_Chapter_Introduction