College Microsoft Opens the Gates: Patent, Piracy, and Political Challenges in China Question Piracy is the major risk that Microsoft is facing by moving into china. Software piracy is a major risk in china and the government policies to stop it have all been in vain. They also risk defending their IPR in mainland china. Foreign firms are not treated fairly and their IP is at risk of being hacked through the internet. Piracy is not diminishing in china since from 2005 to 2009 most of the piracy levels were high up to 85%.
With increasing technology in china, piracy is expected to rise. These risks are very dominant in china alone and not so common in other developing economies. This is because of lack of government cooperation to stop these risks (Luthans, Jonathan 389). Question 2 To manage its political risks in china, Microsoft opened a new office in china and signed agreement forms with PC producers in china so as to preload their software in their computers during manufacture. They also obtained new IPR commitments from china. Microsoft also opened a new research lab in china. Question 3 The main challenge faced by Microsoft for dealing with lower levels of government is the risk of piracy and lack of protection of their IP from hacking by the local hackers.
However the opportunities included an increase in the market for their products as this lower government provided a large market (Luthans, Jonathan 390). Question 4 Other companies do not have the same risk option as Microsoft because of the cost of establishing and maintaining such risk options that Microsoft has. Question 5 Yes there are serious risks that Microsoft is getting into by financing and supporting local software firms.
The main risk is piracy. By transferring their technological advances to these software firms, they risk piracy as these are the main people who are known to pirate software products. To manage these risks, Microsoft should ensure that they do not trust these software firms to much to the extent of exposing their IP and other important information that the firms may use to pirate their products. Question 6 Microsoft should not follow Google in internet censorship. The main advantages of this censorship are that it will protect the organization from cyber attacks from china.
This will mean that the risk of piracy will be reduced. However the main disadvantage is that it will lose it big market that is found in the Chinese market. It is therefore advisable that they look for ways to deal with the hacking and piracy and save the business instead of quitting. Work cited Luthans, Fred, and Jonathan P. Doh. International Management: Culture, Strategy, and Behavior. Boston: McGraw-Hill Irwin, 2009. Print.