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governmental regulation of Google

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Should the government regulate Google on its services and prices due to Googleâ??s current dominance in several information markets, such as on-line search? Present an argument either for doing so or not doing so.

18. You are a strong advocate for a one-year investment project that would cost your firm $10,000 today, but generate virtually certain earnings of $15,000 at year-end. Those in your firm's financial group concur that the investment is virtually risk-free, but nonetheless your boss is concerned about the firm's cash flow problems. In fact, the problems are so severe that the firm's bank currently charges it 20 percent on one-year loans. Convince your boss to undertake the project.

19. You work for an unemployment agency that distributes unemployment checks to unemployed workers in your state. Your boss recently learned that the President proposed a 21 percent increase in the minimum wage, and wants you to provide her with an estimate of the number of additional workers who will file for unemployment compensation claims next year if the bill passes. Based on library research at a nearby university, you learn that about 200,000 workers in your state earn at or below the current minimum wage. Further library research turns up a study that reports the own price elasticity of demand for minimum wage earners to be -0.30. Based on your findings, how many additional workers do you think will file unemployment claims in your state? Provide a numeric estimate.

20. â??Strategic planning would be greatly improved in most organizations if the â??ordinaryâ?? employees in the organization were given substantial opportunities to affect the process,â? says one consulting guru. But a competing consulting guru says, â??No, excessive involvement from these lower level employees would accomplish little because these employees canâ??t see the big picture. Thatâ??s what top management is tasked to do.â? Who do you side with and why?

Bonus Question! How rational are you? Hereâ??s a scenario for the Holidays: â??You walk into a storefront and notice a beautiful coat that is just the right cut and color and up close it gets even more beautiful. Then you discover that it is twice as expensive as you had originally guessed. After 30 seconds of painful deliberation, you decide that you canâ??t possible justify paying so much for a coat. When you get home, however, you find out that your significant other has bought you that same exact coatâ?¦using money from your joint checking account.â?
Hereâ??s the (drum rollâ?¦) question. Would you sayâ?¦
(a) â??Honey, this is very nice of you, but I have already weighted the costs and benefits and decided that this coat is not worth the money, so please take it back immediately.â?
(b) â??Thank you so much, I love it!â?

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I believe that there is no need for the government to regulate Google on its services and prices. I believe that the market will eventually price in the needed regulation. For example, given the profitability of certain online services, other companies will eventually enter the market and encroach into Google's territory. This increased competition will then put pressure on Google and its competitors to lower prices.

Question 18
Cost of the investment project = $10,000
Bank ...

Solution Summary

This posting debates governmental regulation of Google and other issues.

See Also This Related BrainMass Solution

Google Globalization: legal, cultural and ethical challenges; role of host government

Address the following topics:

1. Describe the legal, cultural, and ethical challenges that confront the global business presented in this case study.

2. Determine the various roles that host governments played in this particular global business operation.

3. Summarize the strategic and operational challenges facing global managers illustrated in your selected case.

Case Study: Google in China

Google established a universally accessible and useful search engine operating with the mantra, "Don't be evil!" This meant that Google should never compromise the integrity of its search results. For example: Google decided not to let commerical considerations bias its ranking. This mantra has become a central organizing principle of the company.

Google's mission and mantra raised hopes that the search engine would be a tool for circumventing government censorship, democratizing info, and allowing people in heavily censored socities to gain access to info that their governments were trying to supress, including China.

Google began a Chinese language service in 2000, with operations in the U.S. Chinese authorities blocked the site. Users were directed to a Chinese rival. Google's managers ordered dozens of books on China in order to understand the country. Two weeks later, for unclear reasons, Google's service was restored. Google had changed nothing about their service but Chinese users could not access politically sensitive sites, proving that the government was censoring more aggressively.

In 2004, Google understood China was a strategically important market. To exploit the opportunities China had to offer, the company realized it would have to establish operations in China, including its own computer serves and a Chinese home page. Serving Chinese users from the U.S was too slow and the service was degraded by censorship.

Once China operations were established Google would be subject to Chinese regulations including censoring info. For 18 months managers debated the pros and cons of entering China directly as opposed to serving the market from the U.S site. Ultimately they decided to set up in China. China promised to be become the largest internet market in the world and a major advertising resource for Google. Competitors, Yahoo, and MSN had already established operations in China.

In 2005, Google established a direct sales presence in China. In 2006, Google started its Chinese home page, maintained by chinese employees in Beijing and Shanghai. Google's objective was to give Chinese users, "the greatest amount of info possible." which was not the same as access to all info.

Google had decided to engage in self-censorship, excluding results on politically sensitive topics as Democratic reform, Taiwanese independence, the banned Falun Gong movement, and references to the notorious Tiananmen Square massacre of democratic protestors that occured in 1989. Human rights activists protested, arguing that Google abandoned principles in order to gain profits. Google claimed it was better to give users access to limited info rather than none at all or to serve the market from the U.S. and allow the goverment to continue censoring search results.

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