Global Business Environment Assignment

This assignment examines three key topics within the global business environment: the impact of government regulations on social media firms, the effects of President Trump's economic policies on foreign economies, and the opportunities presented by emerging markets for business expansion. It analyzes these topics using relevant frameworks and examples, providing insights into the challenges and opportunities faced by businesses operating in a globalized world.

Global Business
Environment

MAIN BODY
Topic 1: “Rising risk global social media firm such as Facebook, twitter and Instagram face by
propose or actual government regulations and possible impact which have on firms.”
Social media is an interactive computer mediated technologies which facilitate sharing of
information, ideas, career interests as well as other activity through virtual communities and
network. There are several social media firms such as Facebook, Instagram, Twitter, LinkedIn
and so on (Yar, 2018). Apart from this, social media related activities are increasing day by day
which result in creating negative as well as positive impact on users which may be children,
adult and youngsters. So for minimise negative effect and developing positive government of
every nation has given some rules and regulation in relation of it.
According to the reality check team of BBC News Government, each and every nation
has proposed measures for regulating social media firms related to harmful content. These
proposed measures and regulations are often be considered as risks for these social media
firms, these measures includes substantial fines as well as the capability of blocking services
which do not stick to the rules. Content which promote fake news, hate speech or extremism or
may trigger as well as exacerbate mental health problem should not be posted on social media
companies such as Facebook, Instagram, Twitter and so on.
For instance, a historical example can be taken in which YouTube, which is a social
media company defended their records on removing inappropriate content. Moreover, Facebook
that has been owns by Instagram have approx. 30,000 people at worldwide level who are
working for safety as well as security. Thus, they have removed 15.4m pieces of violent content
within October and December, up from 7.9m within the last three months (Steger, 2017).
Although, some inappropriate content removed automatically before seen by the users.
According to the cultural minister, government has to bring laws and legislation which will
force social media platforms to remove content that are illegal and have to prioritise the
protection of users who may be vulnerable adults, young people as well as children.
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According the views of Wollacott and the model presented above, rules and regulation
given by government in relation of social media have positive as well as negative impact on
social media companies because it results in minimising illegal activities and yet it results in
higher cost of security to these firms. Government rules and regulation give impact on social
media organisation at different level such as:-
 Direct and organisation level influence- Such rules and regulation directly impact on
removing illegal or unauthentic post but this require proper security which results in extra
expenses for organisation. These also influence organisational profitability and their
growth rate.
 Environment and strategy level influence- Due to changing regulations and policies of
government, strategies such as organisational structure changes which adversely impacts
social media firms. These regulations often impacts environment of company by giving
related policies which adhere these firms to restructure their environment.
Legal bodies of United Kingdom proposed new rule for social media organisation which
involve fines, prosecution of senior manager, site blocks and so on for such companies who get
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fail to protect their users (Drummond, McGrath and O'Toole, 2018). Apart from this government
has bring White paper in term of online harm it has been set up a regulation for police online
platform by implementing serious penalties if social media companies get fail in removing
violent content efficiently. This proposal related to white paper cover online material such as
terrorist content, abuse, child sex, hate crimes, harassment as well as the sale of illegal products
or services.
Topic 2: “President Trump’s approach to economic policy impacts upon foreign economies such
as the China.”
Economic policy is course of action which is intended for influencing as well as
controlling the behaviour of economy (Sachs, 2018). Although, economic policies are mainly
implemented or administered by the government of particular nation. For instance, decision
related to government spending and taxation, relation to the distribution of income from rich to
poor people and supply of money.
According view point of Yglesias it has been identified that, President Donald Trump has
change the entire foundation of global trade by implementing tariffs on millions of dollars. This
result in trade war it is that when nations try to attack each other trade with taxes as well as
quotas. In simple term, if one nation will rise tariffs which is kind of tax other countries also
respond it in same manner (Che and et.al., 2016). This may hurt economies of other nation and
result in increasing political tension within different nations. But Donald Trump has expected
trade war is good and easy as well as he is not afraid to rise tariffs. In addition to this, tariffs are
tax on the product made in abroad. The president has impose tariffs on billions of dollars' worth
of goods from around the globe, particularly within China. This imposition can be presented by
an example, which stats President Donald Trump placed 10% charge on $200bn worth of
Chinese goods. Furthermore, Trump has announced to place 25% tariff on $325bn of other
Chinese goods. It has been said by Mr Trump that amount $100bn gained from tariff will going
to be use for purchasing agriculture goods from United States. After that, these agricultural
products will be send to poor or starving nations for humanitarian assistance (Rodrik, 2018).
Although, Trump want to cut trade deficit within China because by him unfair trade has been
suspect before becoming president. Trade deficit means difference within how much a nation is
purchasing goods from another in comparing that how much one country is selling to another.
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United State has a massive trade deficit with China as well as in last year it has been increase by
$43.6bn to $419.2bn (Trade wars, Trump tariffs and protectionism explained, 2019).
The impact of Trump economic policies can be understood by the above model mutli
level theory. The above theory is representing impact at macro, Meso and micro level. As on
micro level, trade deficit is adversely impacted foreign economies and on meso level unfair trade
practices has been stopped which somewhere positively impacted foreign economies. In the end,
at micro level employment opportunities has been generated which also positively impacted
foreign economies. By this model it can be said that besides micro level, meso and macro levels
of foreign economies are benefitted by economic policies of Trump.
Topic 3: “How emerging economies are presenting opportunities for global expansion for
businesses.”
Rapid growing as well as volatiles economies of a nation is known as emerging economy.
This promise of potential growth but also have some risk such as political, social and monetary.
Emergence mainly take place due to modification within market, business culture, technology as
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well social practices. There are some key characteristics which explain emerging economy in
easy manner; rapid growth, high market volatility, less mature capital market, higher than
average return for investment and less than average per capita income (Noe and et.al., 2017).
Although emerging economy is presenting several opportunities for global business expansion.
Like, economy is growing faster which result in growth of upper class population so demand of
such people also get increase in relation of luxury product which are not available in such
countries who have emergent economy. So it is advantage for luxury offering organisation to
expand their business in emerging economy countries. Moreover, scarcity of product and
services make easy for firm to gain status symbol. These opportunities can be better analysed
using Ansoff matrix.
Ansoff matrix -
 Market penetration - Small business such as shopkeepers have chances of building
relation with customers within emerging economy by offering them quality in their
existing product as well as services.
 Market development – As per this approach, small scale businesses have opportunities
to expand their market by going global with their existing products.
 Product development – In this approach, businesses can expand their activities by
offering new innovative products in their existing market by which their market will be
enhanced without leaving their home emerging country.
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(Source: Ansoff Matrix, 2018)
 Diversification – Small scale organisations can gain profitability by doing business
expansion. In this, companies have opportunity of building brand image in new market
and new products because such economy may be the virgin territory for product offering
by business (Cowling and et.al., 2015).
Apart from all this, companies who expand their business at global level within emerging
market get labour with low cost as well as within emerging market value to currencies get
decrease which result in cheaper export for organisations (Meyer and Peng, 2016). In addition to
this, organisations have great opportunity of joint venture as well as acquisitions which help
them in generating more revenue within emerging economy. In simple term, emerging economy
provide opportunity to business for entering within new market by using several tools such as
market development. In this company take their existing offering with brand name and searching
relevant buyer at global level. Second option is diversification which means development of new
products for new area in which business is expanding.
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Illustration 1: Ansoff Matrix

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