The advantage of this strategy is that it allows Google to enter the Chinese Internet market by working with a local company which understands the environment much better than the Google. For instance, Google had problems with the Chinese government for censorship issues. The problem was that Google did not understand how censorship was handled in China, whereas, Baidu understands what should and should not be censored. Furthermore, Google was losing to its competitors because Google did not know the wants and needs of Chinese Internet users as well as their competitors. Therefore, Google could not offer the products and services that could compete with their competitors.
It also fails to measure the economic services provided by the nature and all the things that do not have a market price. It fails to take into consideration the value of social bonding, education, health leisure, a clean environment and so on. To support it further former US senator once rightly said “GDP measures everything except that which makes life worthwhile.” Thus GDP measures only the final output and does not guarantee the quality of that output. To sum things up, it can be said that by focusing only on final output, the GDP ignores the important factors of e... ... middle of paper ... ... get affected recently by this fact is China. China was so obsessed in improving its GDP that it completely overlooked the air pollution resulting from the economic activities (CleanBiz.Asia Staff, 2013).
Whereas, closing foreign social networking to Chinese people won’t be a good method for the development of Chinese society. If people of a country only know one-sided information and they cannot really know their country, how can they help their country to get great development? To know the comprehensive information of Chinese society won’t bring bad influence to Chinese people, but the one-sided understanding would be disadvantageous to the development of the country. China should accept foreign Social networking like Facebook, Twitter and YouTube, because will allow Chinese people to gain comprehensive information about their world. The comprehensive information is a huge power to make society to be more powerful.
Instead of spending more money on R and D, invest at home and where the business model works. With the Chinese market the way it is, Wal-Mart cannot mitigate threats easy, or exploit opportunities because they are having trouble even putting their stores where they want. Great business model, sure, but some places just don’t work. Wal-Mart leaving doesn’t mean failure. Wal-Mart leaving just means re-allocation of success driven goals.
Only currency and capital controls, many experts believe, immunized China from the contagion of the Asia financial crisis of 1997 (Engardio 203). China’s growth has dazzled the world, but the waste of money has not been as publicized. The profits from export trade and captive savings from its people China can invest recklessly. More that $3 trillion is placed inside Chinese banks, earning paltry interest, because the country’s capital controls and undeveloped capital markets prevent savers from investing it elsewhere (Engardio 205). China’s four biggest banks and thousands of local lenders have allocated the country’s cash poorly.
If this is a sign of declining growth then the Chinese government will have to intervene and make the necessary corrections. Moving away from the industry sector to the service sector could be beneficial. China’s government is heavily involved with the economy and if the government fails to perform then the economy will suffer. Political corruption can deter business investments, which undermine the ... ... middle of paper ... ...the economy. Political corruption is ripe and there is very little that can be done to the top officials if they are corrupt.
That commercial seemed a little extreme, so for this paper, I seek to correct these sorts of misconceptions, or to at least show that some arguments about the national debt are a little wrong. Probably the most important misconception about the national debt is the misconception that China owns most of the national debt, and that such a situation makes the United States government a puppet to China. The latter misconception doesn't take much research to see as an exaggeration of the truth. Unlike personal debt, national debt isn't enforced by some higher power. Money owed to China is a deal between the borrower and China, and there aren't any higher powers to force the collection of debts.
Xi Jinping, the newest president of China has already begun to address major issues that negatively impact China such as poverty, pollution, and corruption (Phillips). India, unfortunately has been doing little to change those three things that plague the nation. Their economy, on the other hand is a different story. India’s economic growth India’s economy is on the path to success, but for now, it’s still a developing country with a low literacy rate and large wealth
Because many business transactions take place, it often occurs that the quality of products produced is poor. Managers are supposed to supervise production and enforce regulations to produce the best quality of products as possible, but in China the managers are focused on the quantity produced rather than... ... middle of paper ... ...ectionism is a large factor because foreign companies are afraid that local courts in China might have the tendency to protect local interests” (Ye). The last main problem is the inability to locate assets. Local Chinese courts may be “unable to locate the asset of the party against whom the award is rendered to enforce the award” (Ye). This can occur in other countries as well as evolve into even larger problems.
The company has to adjust its policies to conform to the Chinese moral and ethical frameworks that guide CSR activities in the country. Google faces challenges doing business in China because its CSR policies are not compatible with the Chinese market. The regulatory conditions and the sociocultural norms, upon which Google’s CRS policies are founded, unfortunately are not applicable in China. As a foreign company not used to the country’s laws, Google is facing strict and constant social controls on its CSR activities. This deters Google’s operations in China since the Chinese government is unwilling to give in to Google’s demands.