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An Examination of Google: A Global Operation

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Task: Select a U. S. based company with global operations and discuss the following questions:

1. Discuss the firm's activities outside of the U.S.

2. What are some economic concepts that apply to Google?

3. How can these concepts address Google's opportunities and problems?

4. What are some political and economic policies affecting Google and how do they influence decision-making?

5. How does Google use technology to its strategic advantage?

6. How is Google's strategy, currency risk, markets, and cost structure affected by globalization?

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Solution Summary

Google is discussed in this solution in terms of its operations in India, as well as which economic concepts apply, how they can be used to help Google, policies affecting the company, and the use of technology. Finally, how globalization has impacted Google is discussed in this 670-word answer.

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The US company selected for this assignment is Google that operates in numerous countries across the world, including R&D, back office operations in low cost nations such as India. For the purpose of this assignment, we will discuss the Indian operations of Google.

1. Discuss the firm's activities outside the U.S.

Google operates R&D, back office and development centers for its various products/services in India to enable cost savings by utilizing the huge talent of IT workers in India available at lower salaries. Google has set up operations in multiple cities across India and have hired thousands of workers for its various products such as Adwords and other back office operations.

2. Identify which economic concepts, such as absolute or comparative advantage, apply to your firm.

The theory of comparative advantage applies to Google as the company is trying to take advantage of the huge pool of a qualified labor force in India available at low costs. India has a strong pool of information technology and an educated labor force in ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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