Analyzing Risks Faced by Social Media Firms from Government Regulations

This report analyzes the risks faced by social media firms from government regulations, including censorship, fines, and criminal liabilities. It discusses the impact of these risks on the firms' business activities and reputation.

Global Business Environment

TABLE OF CONTENTS
1. Analysing risks social media firms face from government's regulations. ..................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
2. Opportunities presented by emerging economies for global business expansion........................6
INTRODUCTION...........................................................................................................................6
MAIN BODY...................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
3. Trump's economic policies and their impact on foreign countries..............................................9
INTRODUCTION...........................................................................................................................9
MAIN BODY...................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

1. Analysing risks social media firms face from government's regulations.
INTRODUCTION
Global social media firms such as Facebook, twitter Instagram etc, faces number of risks,
that are increasing day by day. The report will analyse what are the reasons for that risks,
including government's pre-existing regulations or proposed regulations. It also states impacts of
those risks on these social media firms, and how they could hamper their business activities.
MAIN BODY
Governments of any country possess the power to limit the use of social media platforms
in order to restrict the misuse of these platforms by users. Government also proposes regulations
for social media firms which requires company owners to take down content, which is often cited
unsuitable. Governments proposals also orders social media firms to censor the unlawful posts,
failing that, social media firms has to face criminal liabilities. Some regulations also directs
social media firms to pay heavy fines, if they fail to censor/remove content which is found
inappropriate by respective governments. Major tech-giants which follow U.S regulations,
generally refuse to obey regulations of different countries, to counter that government of
different countries either put complete ban or prohibit the firm's access. Various governments
also introduces safety laws on social media firms in order to safeguard their citizens (Kotsios,
2019). This directs social media firms to protect their users, or face legal actions/penalties. Some
country's governments also sets up an independent regulator/supervisor to look upon social
media firms. That regulator has been giver power to impose penalties, block social media
platformers or to take against individual of social media management. Those regulators will see
amount of unlawful content on social media platforms and will analyse how the companies are
dealing with that. Social media also have to face a new statutory called 'duty of care', which
makes these platforms to take on more responsibilities and to safeguard their citizens.
Some governments also introduces conditions, that at time of emergency, the government
will be allowed to monitor everything on social media platforms. In South-East Asian region too,
the governments of those countries are becoming stricter than before. They introduced
regulations that resulted in more data localization. Also, more countries are now geographically
blocking social media platforms in context of nation's privacy. Rise of fake news globally also
contributed in introduction of many cyber laws or regulations for social media firms by the

governments. Some countries also demanded centres of the operating social media firm in their
countries, in order to have communication with responsible individual directly at any time.
Such laws or regulations which are set or proposed by government's of different countries
does huge impact on social media firms. These factors affect heavily their businesses in those
countries and also impacts on their main purpose, by affecting on their operating strategies. As
any time due to internet shutdown by governments, the user's are not able to express themselves
on social media platforms. Sometimes due fake news spread, or failure in controlling data over
social media, social media firms had to pay fines or be ready to face action by government
further damages their reputations and also results in heavy monetary losses. Due to different
policies or regulations of different countries, these firms find it very difficult to deal with them.
This results in permanent shutdown of social media firm in that particular country or may faces
ban.
CONCLUSION
This report concludes, that social media firms such as Facebook, Twitter and Instagram,
faces many risks from proposed regulations and laws of government. Such as paying heavy fines
in case of law prohibition, or closing businesses from such policies. These regulations also
impacted on their reputations.

REFERENCES
Books and Journals
Kotsios, A and et.al., 2019. An Analysis of the Consequences of the General Data Protection
Regulation (GDPR) on Social Network Research. arXiv preprint arXiv:1903.03196.

2. Opportunities presented by emerging economies for global business expansion.
INTRODUCTION
Emerging economies are those economies which has characteristics of a developed
countries, but are not yet considered to be developed economy. This report will also analyse, the
opportunities which are offered by emerging economies for the global business expansion, such
as cheap labour, high demand, volatile market etc.
MAIN BODY
Emerging economies are those which are considered to be growing and advancing, which
are not yet declared as developed countries. It is believed that 60% of world's economy will be
contributed by emerging economies. Fast, growing, more than average returns, high volatility,
etc, these are some characteristics offered by emerging economies which makes investment in
these economies promising. Due to the quick income growth of people, more consumers are
coming out of poverty, that results in a market place having lot of potential for businesses and
services to launch. It is also true that emerging economies drives innovation, making investment
easy in such economies, allowing businesses to innovate products in these economies at cheap
costs (Marinov, 2019). Businesses before entering into foreign market should see investment
opportunities, cultures and also should be aware of consumer needs. For example, When Gillette
was entering into India, it observed that Indian men used T-shaped razors, because they were
inexpensive but gave serious cuts and injuries to the face. Gillette developed a razor called
'Guard' which was inexpensive too and safe also, this resulted in making 'Guard' fastest growing
product in India. Emerging economies also have growing upper class, which are interested in
purchasing premium products of businesses. In an emerging economy, businesses get an
opportunity to launch product which are not currently available in the market, resulted in
acquiring good amount of market share. Upon acquiring position of market leader in emerging
economies, businesses can have significant role in developing or shaping that economy.
Emerging economies also provide protection against recession. If businesses has been set
up in multiple economies, then losses due to recession in one country can be covered by profit
generated from other emerging economy. Also, expanding and running smooth businesses in
emerging economies also helps in developing good prestige or reputation of businesses.
Businesses can take advantage of good literacy rate and cheap labour of emerging economies.
Emerging economies generally don't produce products which are efficient enough as of

developed countries, this gives businesses or companies an opportunity to start exporting
products from developed to emerging economies. Emerging economies offer diversification
which attracts many investors or businesses to cash in on these economies. Major business firms
can benefit in emerging economies by partner shipping with local companies or with the help of
joint ventures. Due to this they can expand their current business in order to take more market
share. For example, Google has invested around 550 million in China and teamed up with
JD.com, because warehouses of JD.com doesn't have workers instead they have installed robots
(Russell, 2018). The goal of this merger was to increase sales of JD.com's products using
Google's customer approach.
CONCLUSION
Concluding this report, it can be said that emerging economies provides ocean of
opportunities to business owners who want to expand their business globally. From cheap labour,
access to brilliant minds to younger population and infrastructure opportunities etc.

REFERENCES
Books and Journals
Marinov, M. A., 2017. Introduction: Marketing in emerging economies. In Research Handbook
of Marketing in Emerging Economies. Edward Elgar Publishing.
Online
Russell, J., 2018. Google makes $550M strategic investment in Chinese e-commerce firm
JD.com. [Online]. Available Through : <https://techcrunch.com/2018/06/17/google-
550-million-jd/>.

3. Trump's economic policies and their impact on foreign countries.
INTRODUCTION
Trump is the president of USA. USA is considered to be super powerful country of the
world. And often USA and Trump's policies are generally USA centred, which are not beneficial
for any other emerging economies. This report will analyse about such Trump's economic
policies and their impacts on a foreign country.
MAIN BODY
Trump's economic policies were based on simple ideology, that is to break down taxes
and regulations and spending more on military and in infrastructure growth. Also, by investing
1.5 trillion dollar in reforming plan, Trump reduced corporate tax from 35 percent to 21 percent
only, this is the biggest tax cut ever in history (Wallis, Wright and Nash, 2016). This provided
relief to millions of taxpayers. Trump administration also cuts some banking reforms, in those
areas where some institutions were affected, also reversed some mass environmental protections
which were stealing jobs. Trump also increased tax exemption from 5.6million dollar to 11.2
million dollar, making it twice then before. This will increase the amount of wealth people can
leave for their heirs. He also increased exemption for married filer from $86k to $110k on
alternative minimum tax, making it affordable for upper income taxpayers. He ended penalty on
individual which was imposed under Obama's rule, allowing individual free to not to buy
services that are forcibly offered. In order to give tax cut to people who are paying less tax,
Trump increased child tax credit from $1k to $2k. To reduce lot of complexities in taxes, Trump
increased standard deduction for married couple filling jointly from $13k to $24k, because most
taxpayers do not itemize (Henderson, 2019). Trump also allowed people to keep more of their
incremental income by lowering top rate from 39.6% to 37%, which resulted in providing
economic freedom to people.
Trump's trade war and economic policies are contributing to global recession, which may
be hurting for China too. Due to these economic policies and trade wars between US and China,
Chinese economy grew at a very slow pace, It reduced to 6% from 6.2%. China witnessed the
lowest annual growth in 29 years. Chinese residents are not doing big purchases and avoiding
luxury lifestyles at all. Growth of retail sales reduced to 8.2% from 8.4%. Auto mobile also faced
the biggest market share reduction by 11%. Outputs from industries fell to 5.6% from 6% which
is lowest in 17 years, and investment in factories and real estates also fell by 0.1%. This slowing

down of China increases the chances of tax rate cuts, which could lead to more political unrest in
the county. Trump's economic policies killed 5 million jobs in China (He, 2020). Also, imports
from America also reduced to 15.7%, which further contributed in inflation of about 3%. China
is known to be major exporter to US, and now the export rates have been dropped by more than
12%. Trump administration also imposed three tariffs of around $250 million on Chinese
imports.
CONCLUSION
This report concludes that, how Trump's economic policies are more USA centred, his
policies works on principal of “America First”. Those policies had adverse impacts on other
economies. After analysing his economic policies, it can be concluded that Trump's economic
policies affected China adversely, which resulted in trade war.

REFERENCES
Books and Journals
Wallis, S. E., Wright, B. and Nash, F. D., 2016. Using integrative propositional analysis to
evaluate and integrate economic policies of US presidential candidates. White
Paper. 16.
Online
He, L., 2020. China just reported its weakest annual growth in 29 years. [Online]. Available
Through :
<https://edition.cnn.com/2020/01/16/economy/china-economy-trade/index.html>.
Henderson, D. R., 2019. Trump’s Economic Policies: An Assessment, Part-1. [Online].
Available Through : <https://www.hoover.org/research/trumps-economic-policies-
assessment-part-1>.