Microsoft plans to make a footprint in China that could help both the company and the country. The software innovation center will be a big step for the company and could increase the amount of tourists China sees each year, but why China? Why is Microsoft concerned about China when so much needs to be done in America?
What Will the Center Be Used For?
Microsoft has made it their ambition to encourage software development in various fields. The innovation center will focus on creating software for the tourism and agriculture sectors, but also has hopes of boosting tourism in the area. The exact types of software the company will work on are unknown, but the world as a whole could certainly benefit from software that helps improve agricultural production and countries suffering through a bad economy could certainly use ways to boost tourism, especially from those visiting from outside the country.
How Will It Help China?
China is one of the most densely populated countries in the world. Learning to make the most of what land they have could be hugely beneficial for feeding its citizens. A boost in tourism could also help the country grow financially.
What Does Microsoft Hope to Gain?
Microsoft has much to gain by getting their foot in the door, so to speak. The large Chinese population would make it easy for the company to open other innovation centers, supplying much needed jobs to the Chinese workforce. Of course, this also means that the company could pay much lower salaries than they would in America. Just one American dollar currently equals over 6 Chinese yuan. In other words, Microsoft’s money will go much, much further in a country like China.
Why Not America?
Despite the need for American jobs, Microsoft needs to use their money wisely, just like any other company. Because their money will go six times further in China, they’ll be able to accomplish much more for the same amount of money. It’s a cold, hard fact that doing business in China is more affordable for any large, American business. Unfortunately, this means that more and more jobs may soon go overseas.
Microsoft is one of the largest software and hardware manufacturers in the world. While there are hundreds of thousands without work in America, opening an innovation center in China will allow the company to hire many more employees than they could here in America. It’s certainly not ideal for the American workforce, but when a company can get six times the amount of work done for the same price, it only makes sense for them to do so.
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