VC7

List the pros, cons, and unknowns if Facebook were to seek a way for the Chinese government to allow its expansion into China. What are the risks if the firm remains out of the country? What do you think the firm should do?

Pros: 

• Expand businesses by opening them to a larger client/customer population

• Catering and suppling towards a new customer base and demand

• The chance to increase profits of the firm and businesses within the platform 

• Allow the ability to reunite and reconnect with relatives outside of the country

• The platform has put effort in localization to better adapt to the language, cultural, and regional difference in different countries, so it can do the same for China

Cons: 

• Opening the doors to spreading more "fake news"

• Regulating the platforms policies to follow the censorship laws in China

• Being compliant with demands from the Chinese government towards specific content

• The possible risk of the platform being banned in China

• It is expensive to cover costs of expansion in a new domain when there is an undetermined value of potential users and profit they may earn 

Unknowns: 

• Would Facebook even be allowed to expand in China based on global political, and past conflict

• How much can Facebook advocate and implement a space for "free speech" with the restrictions China imposes on its citizens 

The risk that the expansion into China poses to Facebook is towards its mission to provide a platform for free speech. Facebook instills restrictions to content that vary based on the cultural and political state of the nation that the platform is used.  Specifically if the platforms is compliant with the Chinese government, the government would limit users freedom of speech to the point that the nation's leaders want, which defeats the purpose of the platform's mission. Although without the expansion, Facebook risks the potential profit they could earn from this new user base. Tapping into the Chinese market would open up users to a larger customer and social base. Facebook should not expand to the Chinese market because of concern of adding more regulation on individuals freedom of speech as well as current users concern about the platforms ability to censor and regulative the private information of users. Facebook is popular in the US, with over a billion users and although the expansion would be beneficial to increasing profits, it is more important that the platform advocates for free speech for all and valuing the goal to provide social and cultural connection is one of the best ways to do so.