Impact of Fiscal and Monetary Policies on Social Media

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Knowledge and understanding on Fiscal policy and monetary policy and the impact on social
media...........................................................................................................................................1
Corporate social responsibility and ethics have shaped the activities of various organizations
in social media sector..................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment or the environment in which the activities of the business is
operated, plays an important role in the functioning and running of the business enterprise. Due
to the terrible consequence of business environment every company have to cautiously analyse
the environmental factors before setting up or doing its business operations. This project will
study about the impact of fiscal and monetary policies and the understanding of the same in the
social media sector. In addition to fiscal and monetary policies this project will also outline the
thought of corporate social responsibility and ethics along with its activities in the social media
sector.
MAIN BODY
Understanding on Fiscal policy and monetary policy and its impact on social media.
Fiscal policy: It is the policy is a policy on tax and total expenditure policies by the
government or composition of the economy (McCubbins, 2019). Fiscal policies are affected due
to change in taxes by the government and change in spending policies. These changes are done
when there is change in market economy conditions like if the economy is falls, the government
increase their spending and reduces the tax rate in the market. Whereas, same as when the
economy is at boom then the government decrease their spending and increase the taxes in the
market to reduce the economy and bring back to the balance. Government targets certain
industries or commodity by changing the fiscal policy in either favour or to discourage that part
of industry or product. The government targets on the aggregate demand by which companies is
provided with some benefits, which increase revenue due to increasing in consumer spending,
increase export etc.
Following are the fiscal tools used by the government to maintain the balanced economy: Increase or Decrease in expenditure: When the government increases the expenditure it
brings the economy back to the balanced level by the increases the aggregate the
balanced demand. This encourages the people to spend and invest more in the market
due to low tax rate and more money to spend which fuels the economy of the country.
This leads to increase in the employment due to more working of the firms. Also,
increase the wages and income of the employees which results in more spending and
invest by them. Whereas, the government decrease their expenditure in the market due to
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