ANSWER TO THE QUESTION NO.

– 1
Employers will maximize profit by demanding labor up to the point where the value produced by
additional hour equals to the marginal cost of hiring a labor for that hour. So, the higher the marginal
productivity of hiring the labor, the more the demand for labor will turn out to be. And that ultimately
ends up raising the equilibrium wage for the labor.

When the wage has increased, it leads to an increased relative price of the corresponding goods produced,
especially when the industry is labor intensive.

But if the relative price of the good is to be kept constant or same, according to Rybczynski theorem, the
production of labor intensive good will increase. Moreover, it will cause the reduction of the production
or supply from other sectors because of the shift of capital or other factors of production.

Moreover, the wage of the workers is in many cases a very good determinant of working condition. But
the question is, if it happens in the real world and if it acts upon in the context of China.

If we can show the evidences behind the labor productivity’s changing causes the upheaval of the change
in ages in the context of China, we can infer that working condition is affected by the change of labor
productivity.

CONTEXT OF CHINA
In the case study in the context of China, this aspect will entirely depend on following conditions:

a. We are assuming that higher labor productivity will increase wage given that a free labor market
exists in China.
b. It is then implied that the supply and demand of labor will not at all regulated by the government
of China.
c. Even if a free market for labor exists in China, for the Rybczynski theorem to apply in the
context, relative price has to remain all the same as before. If it does not remain the same, the
increment of supply of the goods of labor-intensive industry will not take place accordingly. That
would mean that the supply of good from capital-intensive industry or any other factors of
production for that matter will not decrease.

In the next portion, I would like to discuss the Heckscher-Ohlin theorem. It states that the country that is
abundant in a factor exports the good whose production is intensive in that factor. This essentially means
owners of a country’s abundant factors gain from trade. But owners of countries scarce factors lose. Also,
factors of production that are used intensively by the import-competing industry are hurt by the opening
of trade, regardless of the industry of which they are employed.

ANSWER TO THE QUESTION NO. – 4

BRIEF DESCRIPTION OF THE CASE

The case depicts the problems Yahoo and Google faced during their eventful tenure in China and the
voyage is still on. The main issue in China was censorship. For the government it was a huge deal. This
problem resulted in political intervention and it put the local companies in a advantageous position
whereas the foreign ones in a troublesome position. Here go 15 important aspects of the problems
Yahoo and Google faced in China:

1. Chinese people’s indifference to mails

2. The cultural difference such as leaving mail is considered socially awkward in China which was
very common in America
3. Local organization Baidu’s introducing Discussion boards and Live chats
4. Rampant Piracy
5. China’s special emphasis on extensive control over society and the economy
6. Frequent faceoff with local companies as well as the government and the government’s rendering
extra benefits to the local ones
7. Strict social controls and censorship policies in China stood in stark opposition to Google’s
mission to make information universally accessible and useful as well implicitly violating its
informal motto ‘‘Don’t Be Evil.’’
8. Organizational conflict because of the hard and fast rules and too attractive a prospect of huge
Chinese market
9. Scandals such as: Between January and April 2009, Google was twice accused by the China
Internet Illegal Information Reporting Center (CIIIRC) of supplying search results with access to
explicit and pornographic websites, which were barred by Chinese regulators from upholding
cultural and social norms for Chinese Internet users. The CIIIRC is a non-
governmental organization, but it is overseen and funded by a variety of Chinese government
bodies.
 10. Resignation of the then president of Google China
11. Possible pullout of Google and Yahoo’s solidarity
12. U.S. government’s reaction with strong political support for Google’s decision, leading to a series
of high-level exchanges between Washington, DC, and Beijing
13. Vagueness of idea about illicit contents from the point of view of typical American companies
14. Chinese government’s not clarifying the extent of right or wrong which is a huge barrier for the
concerned foreign companies
15. Sense of Nationalism regarding language, manager, etc.

(Tan and Tan, 2012)

BRAND HEALTH OF GOOGLE AND YAHOO

Brand health depicts the effectiveness of the brand’s helping the pioneer reach his aims. It is measured by
(Comparison of Yahoo and Google):

Google Yahoo
a. Brand reputation + +
b. Brand awareness + +
c. Brand equity + -
d. Employee management - -
e. Brand positioning + -
f. Brand delivery + -

BRAND PYRAMID OF GOOGLE AND YAHOO

Features:

Google Yahoo
a. Google search a. Yahoo! Finance
b. Google docs b. Yahoo! Groups
c. Google sheets c. Yahoo! Answers
d. Google slides d. Advertising
e. Gmail e. Online mapping
f. Calendar f. Fantasy Sports
 g. Duo g. Yahoo! News
h. Hangouts h. Yahoo! Mail
i. Chat i. Yahoo! Directory
j. Meet j. Yahoo! Search
k. Podcasts k. Yahoo! Next
l. Chrome OS l. Yahoo! Boss
m. Google Photos m. Yahoo! Meme
n. YouTube n. Y! Connect
o. Jamboard o. Yahoo! Accessibility
p. Keep p. Yahoo! Axis
q. Blogger q. Yahoo! SearchMonkey
r. Google maps
s. Google earth
t. Waze
u. Street view
v. Google WIFI
w. Google Pixel
x. Google translate
Functional benefits:

Google Yahoo
a. Widespread search engine availability a. Communication
b. Work and productivity b. Content
c. Operating system i. News
d. Scheduling and time management ii. Sports
e. Cloud storage apps iii. Answers
f. Language translation iv. Games
g. Instant messaging and video chat v. Movies
h. Blog publishing and note taking c. Co-branded internet services
i. Photo organizing and editing d. Mobile services
j. Mapping and navigation e. Commerce
k. Video sharing f. Advertising
l. Web browser, etc.
Emotional benefits:

Google has been an integral part of smartphone users despite the threats of competitors. According to
American Customer satisfaction Index (ACSI) score of customer satisfaction with the search engine
Google, it scored 79 in the index of 100, surpassing any other search engines in the world. Yahoo stands
at the very next position with 72 score.

Brand persona:

Google’s brand persona should be described as omnipresent. Since its birth, it has been empowering
people with the power of information all around the world. Yahoo’s brand persona has been similar to
that of Google but it diminished along the line with the competition and regular criticism.

Brand idea:

The initial idea of the brand started with the idea of a search engine. Later on, it grabbed very many new
technology markets and arguably made the best use of the most of them. The initial brand idea of Yahoo
was web portal. It has been figuring a way out of being overshadowed for a while. It has been revitalized
in 2019.

REFERENCES
Tan, J. and Tan, A., 2012. Business Under Threat, Technology Under Attack, Ethics Under Fire: The
Experience of Google in China. Journal of Business Ethics, 110(4), pp.469-479.