Which country or region do you select as the number one priority for Facebook to

Question

Which country or region do you select as the number one priority for Facebook to invest time and resources in and why? Vietnam, China, Germany, the UK, Ireland, Spain, Brazil, Malaysia, South Africa, Kenya, Chad, Uganda, the USA or another option? What is a multidomestic view? How does it relate to what specific types of provisions you recommend should be written into the Facebook business contracts to limit any legal disputes that might arise between their US based company and any local vendors, banks and clients around the world?  

Explanation / Answer

The country that I will select as the number one priority for Facebook to invest time and resources in would be China. This is simply because of the size and scale that China will offer to Facebook and the positive impact it will have on the revenue as well as profitability of Facebook. China has around 632 million internet users and this is just about 46% of the potential users size that the country has potential for. In fact the average time spent on social media in China far exceeds the average time spent on social media in USA. Thus the opportunities for Facebook is vast and large in China and the company will be able to take advantage of this lucrative market by negotiating with the stringent government regulations as well as censorship. Facebook can take advantage of the opportunities of the Chinese market by operating a server in China.

Multi-domestic view is a view that favors operations of a company to be present in more than one country, in fact in several countries so that benefits are maximized. In a multi-domestic view the world market is viewed differently rather than being similar. For instance under a multi-domestic view the German market will be viewed differently from the Chinese market.

Keeping in mind the multi-domestic view Facebook business contracts should be customized as per the country of operations and should heed the legal nuances that exist in a particular country. The rights, obligations and limits of the local vendors, banks and clients should be spelled out and detailed clearly.

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