– Google is first and foremost a business and its primary goal is to make money. But the company also should take into account the reputation factors that could have negative effect because of moving to China. They had their reputation on stake. Their main purpose is to provide information to people but they went against this principle and violated the human right for freedom of speech. 2) Companies in China (Baidu, Sougou, 360 search) – Google is the most popular search engine and is given first priority in searching than any other search engine, so there will be high competition between the rival companies which in return will decrease their market value and may have to face some loses.
Five rivers believed that this practice was putting Americans out of jobs as the Chinese manufactures were selling at below free market cost. 2. Whose side did Wal-Mart take? Wal-Mart chose to side with the Chinese
Moreover, the retail business has been unable to apply the same tactics that are implemented in America. Wal-Mart is famous for the fact that it offers low-cost goods to customers who purchase the goods from the stores in bulk. However, the Chinese clientele understands the need to get value for their money thus requires more from Wal-Mart than simply low prices. Moreover, the China market is hostile to the western companies (Huang & Yu, 2015). Usually, the local businesses see the international industries as a threat, and this may pose a challenge even to the customers.
Clearly there’s an imbalance basic human rights. The more assistance poor nations get from the wealthy ones the more labour they have to produce. Businesses and companies gain from this because labour with low salaries, no health costs or unions to protect them are involved. Overpopulation has brought about an imbalance socially, economically and environmentally. In some countries such as China and Iran, the government has tried to regulate their populations.
This idea of low prices is the product of Wal-Mart’s foreign importers. Having a large rate of outsourced products allows for the company to “make imports a pillar of Wal-Mart’s business model.” It is evident that Wal-Mart focuses on imports as 80% of its producers are from China. Wal-Mart makes more money on Asian suppliers as Wal-Mart dictates the price at which they purchase the volume of products. Lower prices also make Wal-Mart the
An example of one threat is the government regulations that affect their profits. In Document E, Toyota is aware that “the strong dollar made exporting vehicles and components from its U.S operations are less profitable...,” It is a big challenge that Toyota has to deal with because it can be difficult to make a profit in North America because exporting cars and trucks can be expensive. As a result of these external issues, Toyota should have more factories in North America. To add to the issue, the value of the yen is decreasing which directly challenges the profits they make each year. “Toyotas wariness highlights the uncertainties it faces some of its biggest markets and the fact that much of its profit rise is being driven by the weak yen.” (Document E).
Nearly everything is outsourced from this country, we are 100 percent dependent on other countries to produce our items. Sure, we can blame China, we can blame the 3rd world, but the real problem is the corporations. It is big corporations that do not care about where the product is coming from but about maximizing profits as much as possible. Even companies that produce quality products are outsourcing to save money because it appeals to the shareholders, which all makes sense to a business person. There are some pros to globalization as Mike Collins states that, "supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty."
Since 1985, an export tax rebate policy was executed to enhance the competitiveness of China as an export country. In addition to the originally low-priced land, and the cheap labor force, because of the large population, China becomes the ideal place of building factories. Therefore, the foreign companies minimized their cost while avoided pollution problems could be brought by the production process. Now, the factories’ negative influence on environment started to shown as the form of air
Before 2006, Toray was struggling for their competitors in China and Taiwan. Those companies were producing in very cheap price, so that it was very difficult to compete with their product price. To fix the problem they challenged for finding a buyer partner who can sell clothes with grate add-value price, then UNIQLO became their partner, and Toray’s sales are directly influenced our buying. UNIQLO relies 100 percent on Toray’s production, but at same time Toray relies on our buying. Therefore power of suppliers is
The waste industry is a mega industry and generates economic growth. Governments of poorer countries have been ‘forced’ to back down on economic and environmental regulations, because large companies threaten to take their business elsewhere. Therefore, there is less of an emphasis on clean production and more of an emphasis on job creation and attracting foreign investment. Companies seek the lowest production costs in a global market to supply the consumer with the best prices. These companies contract waste disposal companies to clean up the mess.