Google in China

Paper Summary:

This document discusses Google's China initiative. It first analyzes the budget and the financial cost-basis. It then moves on to discuss the organizational structure and finally examines various exit strategies. It concludes with a brief review of the primary trend driving Google's rationale for entering the China market; chiefly, China's increasing internet usage and reliance.

From the Paper:

"Financing and budgeting the China project is a major undertaking even for a company with the size and scale of Google. The importance of making the proper choice in budgeting strategies cannot be understated as this choice can determine the success, failure or the profitability of the overall project. The primary banking institution Google intends on utilizing in China is The People's Bank of China, largely because it is highly regulated and still largely government owned and operated. Currency risk is easily hedged for because while China has instituted a partial float from its previous fixed peg to the U.S. dollar at RMB8.2, it is still a tightly controlled currency (Soft, 2005). China has, since its partial float, kept its currency stable at approximately RMB8 to the dollar. "

More papers on Google in China :

• Business Plan # 90770 : "Google in China"
• Analytical Essay # 111122 : "Google's Internet Strategy Analysis"
• Essay # 90776 : "Global Business Strategy: Google's Asian Region"

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