Impact of Emerging Economies on Global Business

This assignment discusses the impact of emerging economies on global business, highlighting opportunities for expansion, talent acquisition, and competitive edge. It uses examples from companies like Coca Cola and Apple Inc. to illustrate these points. The assignment also touches on the importance of cross-border movement of services and products, efficient use of capital and labor globally, and economic benefits to nations. A key takeaway is that emerging economies and globalized businesses are interconnected, with one creating opportunities for business growth and the other pushing economic conditions.

Global BusinessGlobal Business
EnvironmentEnvironment

Table of Contents
1. Rising risks in global social media firms like Twitter, Instagram and Facebook from government
and their impact on the firm.....................................................................................................................3
2. Approach used by President Trump to economic policy and their impact on foreign economies,
China.......................................................................................................................................................5
3. Opportunities presented by emerging economies for global expansion of businesses.....................7
REFERENCES............................................................................................................................................9

1. Rising risks in global social media firms like Twitter, Instagram and Facebook from
government and their impact on the firm.
Social media is very important for giving voice to communities who are excluded
from media such as LGBTQIA people and poor people. By providing people a chance to
share under-cover viewpoint by making use of broadcast media, social media has played
crucial role within media ecosystem. Social media acts as a platform where information,
point of views and ideas are shared. Social media is always not a procrastination platform or
online distraction. There are some social media networks which acts as one of the ways to
stay informed about surroundings. Major corporations, persons of interest and news outlets
make use of social media for delivering messages to people. Public stays aware and informed
when things are being posted on social media. Some issues might cause controversy while
social media do more good rather than harming the retrospect. From 4.2 billion users around
3.03 billion are active users and nearby 90% of global brands make use of at least 2 social
media accounts (What are the impacts of social media, 2019).
Figure 1 What is the real impact of social media
(Source: What is real impact of social media, 2019)

The social media landscape is world in which brands and organization are made cool
within short interval of time as compared to traditional media. Companies such as Daniel
Wellington, Gymshark and Aesthetic Revolution are multi-million dollar businesses which
take leverage by making use of influencer partnership, flawless sales funnels and Instagram
tactics. But on the other side, in social media fake news gets more shared specially on
Facebook and Instagram. All the facets of marketing ecosystem will be impacted; influencers
stock will get a big boost. It is the key for influencers to have deep understanding of brand
equity.
The manipulation of public opinion over social media platforms have emerged as an
serious threat to the public life. Political and government agencies are exploiting social media
platforms for spreading disinformation and junk news, exercise control and censorship along
with undermining the trust in public institutions and media. With respect to other media,
social media has created strong impact on political campaigns have enhanced enormously. It
plays crucial role within electoral politics. The election of Donald J. Trump is the illustration
which helped them to fundamentally rewire human society. But it is also responsible for
promotion of social ills like cyberbullying (around 23% of teens were targeted and 15% says
that they were bullied). Social media is misused by teenagers to spread rumors, blackmail
others and share videos to harm reputations of others. It also lacks privacy due to which
information can be misused by anyone. The reason behind this is lack of understanding of
ways in which public and private elements of an online profile.

2. Approach used by President Trump to economic policy and their impact on foreign
economies, China.
Donald Trump is 45th president of US, the term of presidency lies from 2017 to 2021. The
economic plan formulated by Trump aims at making America great again and take it back to
the favorable position which it was in past. He took campaigns pledges which included
various regulations and policies which are associated relevant decline in trade protectionism,
immigration of people, corporate tax and reform of individual. Some other was consumer
protection act along with dismantling of Dodd Frank wall and revocation of patient’s
protection and affordable care act. It was also observed Trump laid emphasis on decrease of
waste by obviating surplus which was used in federal agendas. Trade protectionism was
proposed which reflected protection given to local industries from foreign rivals. This was
done by import quotas, subsidies and other barriers which are imposed on import of foreign
services and goods (Inglehart and Norris, 2016). Trump made sure that illegal immigration
was completely blocked by deporting immigrants who have any kind of criminal history.
A policy was in which jobs were given to workers in America. An enquiry was
done in initial 100 days of Trump’s presidency to acknowledge regulations which were
forced and were not needed. This was done to eradicate inefficient rules and laws. Clean Air
Act and Clean Water Act rules were also given by Trump. They also emphasized on
formulating strong US army so that no one can think about fighting with them (President
Donald Trump's Economic Plan, 2019). For this the budget of Defense was increased up to
10%. But these regulations and rules made by Trump raised conflicts and complexities; this
also led to trade war among different countries. Political tensions increased as nations were
attacking each other due to taxes.

(Source: US Trade in Goods with China, 2019)
Policies made by Trump created strong influence on China, during these tariffs were
imposed on goods approximately billions of dollars. Heavy tariffs were laid on aluminum and
steel trading against China. With respect to this 10% on aluminum and 25% on steel was forced.
This created a strong impact on economic conditions and exports within China. US have around
$375 billion trade deficit with China (Trade wars, Trump tariffs and protectionism explained,
2019). Trump was deliberate to make use of some measures by which trade deficit shared with
China can be decreased.
Various enterprise within US conduct their manufacturing activities in China, when
Trump proposed economic policy in which they devised trade protectionism, it created strong
impact on manufacturing and economy of China. If tariffs are forced on exports then this will
lead to rise in cost of manufacturing products. This means that hardly the organizations will be
interested in exporting raw material or goods from China (Rodrik, 2014). Thereby, from this it
can be stated that strong unconstructive impact is created on manufacturing sector. As this sector
is widely impacted then it will also cause enhanced impact on growth opportunities for youth,
Illustration 1: US Trade in Goods with China

value of economy and various issues associated with this. Thus, the approach used by Trump
created enormous impact on economy of China.
3. Opportunities presented by emerging economies for global expansion of businesses
Economy of a country is a major factor which identifies growth as well as
development of businesses present there. Emerging economies are those countries whose
economies are having high growth. The key elements of these markets are minor than
optimal per capita income, enhanced market volatility, less mature capital markets and more
than standard return for potential investors. All these elements assist in establishment of
emerging market economy. 24 countries were classified as emerging economies as per stats
presented in Morgan Stanley Emerging Market Index (Outperformers: High-growth
emerging economies and the companies that propel them, 2019).. They are Indonesia, Korea,
China, Egypt, Greece Brazil, Chile, Malaysia, Colombia and there are some more.
Emerging economies inspires business enterprises to take their production as well as
trade to to global level by making use of present opportunities which will foster globalization
among entities through reduction of free flow of goods and trade barriers. Emerging
economies provide opportunity to organization in terms of economy as well a demographics
at both micro and macroeconomic level. An affirmative impact is created on organization
when they build healthy relationship with other businesses. By this business can expand
themselves within various geographical locations.
An example of this can be Coca Cola, as they have taken vantage of global
expansion. This business focus on regions where they feel that there is a capability and
potential for business growth. At initial period Coke has expanded their production be
bottling the beverage facilities in countries like Europe and Guam, They started expanding
themselves more they gained recognition and popularity in Italy, Australia, Norway and
South Africa. By taking vantage of infrastructure, transportation and good communication
they acquired edge over those organizations that are operating within specific regions (The
Chronicle of Coca-Cola: A Global Business, 2018).
By expansion on global level companies tends to acquire talented personnel which
offered higher advantage for the organisation. They offer high productivity along with

advanced skills as they belong to diversified backgrounds. Example of this can be Apple Inc.
which has their maximum production units in China so that they can have qualified and
cheap labour by which they can carry out their expansion (13 Businesses With Brilliant
Global Marketing Strategies, 2019). Some businesses take benefits of healthy relationship
with other businesses for gaining competitive edge within market over their rivals.
Thereby, entering into international markets make sure that business organizations
make effective use of cross border movement of services and products, efficient usage of
capital as well as labour globally. All this gives economic boost to the nation. Therefore, it
can be said that emerging economies and globalised businesses are interconnected as one
creates opportunities for business to grow and operate globally while other push the
economic conditions.

REFERENCES
Books and Journals
Inglehart, R. and Norris, P., 2016. Trump, Brexit, and the rise of populism: Economic have-nots
and cultural backlash.
Rodrik, D., 2014. When ideas trump interests: Preferences, worldviews, and policy
innovations. Journal of Economic Perspectives. 28(1). pp.189-208.
Online
What is real impact of social media. 2019. [Online]. Available through: <
https://www.simplilearn.com/real-impact-social-media-article>.
What are the impacts of social media. 2019. [Online]. Available through: <
https://www.digitalvidya.com/blog/impact-of-social-media/>.
The Chronicle of Coca-Cola: A Global Business. 2018. [Online]. Available
Through:<https://www.coca-colacompany.com/stories/the-chronicle-of-coca-cola-a-
global-business>.
13 Businesses With Brilliant Global Marketing Strategies. 2019. [Online]. Available
Through:<https://blog.hubspot.com/marketing/global-marketing-and-international-
business>.
The Most Valuable Sponsorship Deals In Soccer. 2019. [Online]. Available
Through:<https://www.forbes.com/sites/chrissmith/2016/05/11/the-most-valuable-
sponsorship-deals-in-soccer/#7d30139b59e0>.
Outperformers: High-growth emerging economies and the companies that propel them. 2019.
[Online]. Available Through:<https://www.mckinsey.com/featured-insights/innovation-
and-growth/outperformers-high-growth-emerging-economies-and-the-companies-that-
propel-them>.
President Donald Trump's Economic Plan. 2019. [Online]. Available
Through:<https://www.thebalance.com/donald-trump-economic-plan-3994106>.
Trade wars, Trump tariffs and protectionism explained. 2019. [Online]. Available
Through:<https://www.bbc.com/news/world-43512098>.