Rising risk of government regulations and impact on social media firms

Assignment

Table of Contents
a) Rising risk of government regulations and impact on social media firms...................................3
Introduction.................................................................................................................................3
Risks faced by social media firms from government legislations...............................................3
Impact of government legislations on social media firms..........................................................3
Conclusion...................................................................................................................................3
REFERENCES................................................................................................................................5
b) Impact of Emerging Economies on Globalisation of Firms........................................................6
Introduction.................................................................................................................................6
How do developing economies influence globalisation?............................................................6
Examples that show how emerging economies present firms with opportunities to expand......6
Conclusion...................................................................................................................................7
REFERENCES................................................................................................................................8

a) Rising risk of government regulations and impact on social media firms
Introduction
Social media has become an integral part of our lives today and can be defined as a
digital tool that allows the users to create and share engaging content with others quickly
(Cuervo-Cazurra and et.al., 2018). But various social media companies such as Twitter,
Instagram and Facebook are increasingly facing risks from regulations that are proposed by the
government (Curran, 2017). For example, the government can pose regulations on the content
that is posted and shared on social media platforms.
Risks faced by social media firms from government legislations
There are various risks that that are faced by social media firms like Facebook, Instagram
and Twitter from the legislations that are posed by the government (Guihot, Matthew and Suzor,
2017). For instance, the government can pose regulations on the intellectual property as well as
sharing of sensitive data (Krammer, Strange and Lashitew, 2018). The government has presented
a regulation for Instagram, wherein it is bound to use a trusted third-party posting app (Hacker,
2019). Apart from this, the government does not have any rules for reposting the pictures that are
shared online. This poses a risk for social media firms like Facebook as people are not bound in
any case and are free to share the content that they like.
Impact of government legislations on social media firms
Absence of any kind of legislations for social media firms can create issues for them and
affect their business operations directly. The government has specific regulations for sharing of
content, uploading as well as sharing pictures. There is a risk of the overall profitability of the
firm getting affected due to sharing of illegal content (Kannan, 2017). Privacy is another concern
that can the social media firms have to deal with as the level of engagement among communities
on their platform is very high (Hillary, 2017). For example, the government has imposed sales
tax on Instagram as well as Twitter, due to which their overall market share is affected. Customer
satisfaction is the main goal that social media firms work towards.
Conclusion
From the above discussion, it can be concluded that various social media firms face
various risks as a result of certain regulations or legislations that are imposed by the government.