Cap Discussion Forum 1

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Economics

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Apr 3, 2024

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Uploaded by CoachCheetah5120

A U.S.-based company should be concerned if an earthquake, tsunami, or nuclear power plant accident occurs in Japan if their business is intertwined with the country in several ways. A manufacturing company would have reason for concern if they used a Japanese supplier because the natural disaster could decrease or eliminate the Japanese company’s raw materials, ultimately interrupting the U.S.-based company’s supply chain. Another way a disaster in Japan would affect a U.S.-based company would be if the U.S. company employed Japanese labor for the purpose of offshoring or outsourcing. The disaster could harm or kill their Japanese workforce, or it could destroy the physical workplaces, and the impact would be worse if they did not have proper insurance, (Warren, 2005). A third reason why a U.S.-based company should be concerned about a disaster in Japan would be if the U.S. company was dependent on Japanese customers’ purchases to sustain their business. A disaster is capable of causing economic damage (Deraniyagala, 2016), leaving the Japanese people with less money to spend. Although a disaster in one country does not seem capable of impacting business in a second country, if the two countries’ have any business involvement with each other, that second country has the potential to be impacted. Google is a multinational technology company with many well known subsidiaries such as Fitbit, Nest, and Youtube. Google’s parent company, Alphabet Inc., earned over $256 billion in 2021 (Johnston, 2022), and has been expanding its portfolio rapidly enough to be facing a lawsuit for violating antitrust laws, (Justice Department Sues Monopolist Google for Violating Antitrust Laws, 2020). Some of Google’s main competitors in the search engine market include Microsoft’s Bing, Yahoo!, and Baidu in China, (Hivelr, 2023). New competition may come from another innovative technology company that is capable of providing a quick, intelligent, user-friendly search engine website, but Google stays competitive by constantly evolving their systems and by maintaining popularity with brand recognition. Google has acquired so many companies in different fields such as navigation, fitness tracking devices and more that each field outside of the search engine market has to remain innovative to keep its market share.
References Deraniyagala, S. (2016, May). Economic Recovery after Natural Disasters | United Nations. United Nations. https://www.un.org/en/chronicle/article/economic-recovery-after-natural-disasters#:~:text= The%20economic%20damage%20caused%20by,education%20infrastructure%20that%20dis rupts%20schooling . Hivelr. (2023). Google (GOOGL): Porter’s Five Forces Industry and Competition analysis. Hivelr. https://www.hivelr.com/2023/02/google-googl-porters-five-forces-industry-and-competition /#:~:text=Industry%20Rivalry&text=Some%20of%20its%20major%20competitors,to%20impr ove%20the%20user%20experience. Johnston, M. (2022, October 23). 7 companies owned by Google (Alphabet). Investopedia. https://www.investopedia.com/investing/companies-owned-by-google/#citation-36 Justice Department Sues Monopolist Google For Violating Antitrust Laws. (2020, October 21). https://www.justice.gov/opa/pr/justice-department-sues-monopolist-google-violating-antitr ust-laws Warren, S. (2005, February 21). Eye on Offshoring: Lessons from the tsunami. Computerworld. https://www.computerworld.com/article/2569638/eye-on-offshoring--lessons-from-the-tsun ami.html
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