International Business

CASE STUDY (20 Marks)

Google, the leading Internet search engine based in the US, started providing its services in China in the year 2000. Though the company became one of the leading search engines in the Chinese market, it started losing its market share rapidly to local players like Baidu. To remain competitive, Google decided to launch a Chinese website www.google.cn, and agreed to censor the content, in January 2006. Though Google was criticized by industry experts for its decision to censor the content, the company defended its stance by claiming that providing censored results was better than not providing any details at all. However, soon Google started facing problems, and its website was blocked several times for its quality of censorship, spreading obscene content, etc. The company remained second to Baidu in the local search engine market. Google\’s other services like YouTube, Blogger, and Picasa were also blocked. By the end of 2009, Google realized that its website was being attacked and the attacks originated in China. Google also found that Gmail accounts of some of the advocates of human rights in China were broken into. In January 2010, Google reported that its corporate infrastructure had been subjected to a targeted attack from China and announced that it would not censor its results anymore and was ready to shut down its Chinese operations if required. The events leading to its decision to stop censoring the search results in China, adversely affected Google\’s operations in China.

Answer the following question.

 

Q1. Discuss the business and regulatory problems faced by multinational companies in China.

 

Q2. . Examine the reasons for media censorship in China.

 

Q3. Give an overview of the case.

 

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