1. Google faced challenges entering the Chinese market such as censorship requirements and slow search speeds, reducing its market share. To address this, Google launched a self-censored Chinese website and hired a local manager to improve local relevance.
2. Costa Rica imposed a ban on avocado imports from Mexico in 2015 over health concerns, claiming the fruit could contain a virus. Mexico filed a complaint with the WTO, arguing the ban was not scientifically justified.
3. The ban increased avocado prices in Costa Rica by 90% and led to increased smuggling from Panama. The WTO will facilitate negotiations between the countries over the next 60 days to resolve the dispute before convening an expert panel if needed.
2. Agenda
1. Challenges faced by Google while
entering in the Chinese market.
2. Costa Rica imposes ban on import of
avocados from Mexico.
3. Challenges faced by Google while entering in the
Chinese market.
INTRODUCTION TO GOOGLE
Google is considered to be the world largest site for
searching information in a quick way. It came into
existence on 1998 by two students Of Stanford.
The mission of Google is to collect and then
organize the information related to any topic in
such a way one can easily get this information
without facing any difficulty.
4. REASONS OF GOOGLE
ENTRANCE IN CHINA
There are various reasons for Globalization such as
universal recognition as well as due to opportunity of
growth in the foreign market are more. In between the
period of 2002 to 2006 the market share of Google in
china is reducing rapidly now the option available with
Google either to stop its operations in China or to adopt
some changes in order to expand its business in China
(2001). For this there is a discussion on this topic in
order to make this type of opportunity to Google. In2006
it is decided by Google to stay active in China.
5. The reasons for entering into China
market as well the decision related to stay
active in China is influenced by many
factors which are as follows: first one is
there is a great scope of expansion as well
as profitability in Chinese market as well
as the mission of Google is to collect and
then organize the information related to
any topic in such a way one can easily get
this information without facing any
difficulty.
6. Challenges faced by Google in China
In between the period of 2002 to 2006 the market share of Google in
china was reducing rapidly now the option available with Google
either to stop its operations in China.
1. First one is that the people of China now considered Google.com
a slow search engine that will lead to decrease in market share to
63.7% which is very high previously as well as the market share of
MP3 in 2006 decreased to 19% which was 25% in 2002. (The
people of China considered, in order to search information from
Google.com is very time consuming process and they didn’t like to
wait for such longer time to access information).
2. There is some type of complexity involved in the government
policies regarding censorship. In order to solve this issue there is
one option available with Google is to Self-censor (The exercising
of control over what one says and does, especially to avoid
criticism).
7. Google’s solutions to solve these challenges are
as followed:
It is so important for Google to find out the impact of self-
censorship on the search results. In order to increase its
market share at China it is essential for Google to look for
such topics which are already censored by the government
of China, it is related to various subjects such as political,
religious. In political subjects it may include topics like
democracy and in religious topics like Dalai Lama and so
on. It will create the interest of people in Google and it is
also possible for Google to regain its market share in
China which is decreasing continuously.
8. CONCLUSION
The reasons for entering into China market as well the decision
related to stay active in China is influenced by many factors which
are as follows; first one is there is a great scope of expansion as
well as profitability in Chinese market.
After taking the interest of people of china as well as improve the
way of accessing the information and the local conditions of China
which is very unique, Google took decision related to launch a self-
censored website named Google.cn in China in 2006. In order to
take care of Googel.cn, Google has hired a very competent person
named Kai-Fu Lee, after two years of launch of Google.cn in
Chinese market in 2006 the performance of Google is quite well. If
we considered the market share Google.cn market share is quite
well it is ranked as number two in terms of their share as compared
to its main competitor in China which is Baidu.com
10. Reasons for the ban
Costa Rica’s health minister responded to
Mexico’s complaint that “It’s an important
decision to protect the quality of local
avocados.”
Costa Rica believed that the avocado from
Mexico might have been stolen or could
contain a virus.
Mexico said that costa Rica claimed that the
ban has to do with health issue whereas, they
wanted all the “green gold” Avocado money.
11. Mexico takes Costa Rica ban on avocados to
World Trade Organization
The World Trade Organization (WTO) reported that Mexico filed a complaint on Wednesday
against Costa Rica over its ban on imports of Hass avocados from that country, issued in 2015.
Mexico’s Economy Ministry confirmed the complaint in a public statement on its website.
The document says that Mexico recognizes the right of a WTO member to establish
measures to protect the health and life of its people, animals or to preserve its vegetables.
“However, [measures to defend] these rights must fulfill certain obligations, the main one
being to basing these measures on scientific principles, the document states.
Foreign Trade Minister Alexander Mora said in a news released on Wednesday evening that
despite Mexico’s formal opening of a legal process, Costa Rica will maintain the restriction
on avocados from that country.
Mora said Agriculture Minister Luis Felipe Arauz confirmed earlier on Wednesday that the
ministry will not reverse the measures taken to protect the country from the sunblotch virus.
“It’s an important decision to protect the quality of local avocados,” Mora said.
Mora also said that the Foreign Trade Ministry will lead Costa Rica’s defense before the
WTO. Experts from the Agriculture and Livestock Ministry (MAG) will join the defense
team.
MAG’s State Phytosanitary Service, the agency that imposed the restriction on the import
of Mexican Hass avocados, will assume the cost of the legal proceedings before the WTO,
Mora said.
12. Effects of the ban
Costa Rica: Ban on Mexican avocado increases prices by
90%
As a result of the ban on Mexican Hass avocados, avocado prices
in Costa Rica are 90% more expensive than in 2015 and there
has been an increase in the smuggling of this fruit from Panama.
Due to the lack of avocado, Costa Rica had to buy them from
Chile; however, they were only able to cover 35% of the
amount that Mexico shipped to the country, so prices
continued to increase.
Restaurants and hotels have reported that 20% of the avocado
they have is wasted because consumers don't like it and must
pay more for a product that has a lower quality and taste.
Smuggling increases
In addition to the high prices for shoddy avocado, the smuggling
of Mexican avocados that were going to be sold to Panama has
increased in Costa Rica.
13. Resolution
Following the submission of Mexico’s legal
complaint, the WTO will grant Costa Rica ten days to
file a response. Representatives of the two countries
then will have 60 days to negotiate a solution. All
proceedings and negotiations during this period will
remain confidential.
In case the countries fail to reach an agreement at the
end of that period, Mexico is entitled to request the
creation of a panel of WTO experts who will issue a
report and a ruling. The panel should be
appointed within 20 days and will include three
experts, nominated by both countries.
Either one of the countries can file an appeal against
the ruling in case they disagree with the results.