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Google is the latest in a growing list of companies reconsidering their business strategy in China. Following a cyber attack on more than two dozen other companies, Google announced it would no longer filter internet searches and might pull out of China entirely. Most economists and business advisers believe it is impractical to ignore China. However, a few companies feel the costs of doing business there are just not worth it.

QUESTIONS:

  1. What are the global business reasons that cause China to be so attractive?
  2. Review what you learned in Chapter 4 about cultural issues in ethics. It is relatively easy to understand why companies like Levi Strauss and Time Warner pull out of China. Why would human rights issues cause Google to do the same thing?
  3. Google’s decision to stop filtering internet searches in China reflects what global management attitude? Do you believe this shift in thinking is warranted?

SOURCES: S. Mufson & P. Whoriskey, “Google Incident Illustrates Dilemma for Foreign Companies in China,” Washington Post (Retrievable online at http://www.washingtonpost.com/wp-dyn/content/article/2010/01/14/AR2010011402482.html?sid=ST2010011300360)

See also E. Nakashima & A. E. Cha, “Tensions Between Google and China Complicate U.S. Diplomacy,” Washington Post (Retrievable online at http://www.washingtonpost.com/wp-dyn/content/article/2010/01/14/AR2010011404077.html?nav=hcmoduletmv)

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