Risk and Impact of Regulation on Global Social Media Firms

This document discusses the risks faced by global social media firms like Twitter, Facebook, and Instagram from actual or proposed regulations and the potential impact on their business operations and followers. It also explores President Trump's economic policies and their impact on foreign economies like the UK, EU, and China. Additionally, it discusses how emerging economies create opportunities for global business expansion.

Global Business
Environment

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................1
Risk global social media firm that are Twitter, Facebook and Instagram faced from actual or
proposed regulation and explaining possible impact it could have on firm-..............................1
Describing and explaining how President Trump's approach for economic policy which had
impact on foreign economies that are UK or EU or China-........................................................2
Discussing and interpreting how emerging economy are creating opportunities for the
expansion of business globally-..................................................................................................3
REFRENCES...................................................................................................................................5

MAIN BODY
Risk global social media firm that are Twitter, Facebook and Instagram faced from actual or
proposed regulation and explaining possible impact it could have on firm-
Social media firm such as Twitter, Facebook and Instagram are most popular social sites
that have been used by Billions of people across the world. Individuals are daily connected with
each other through this social media and has become a major part of their routine life. Things
could be instantly shared and passed through wide number of people in just a second. Sometime
things couldn't be appropriate for public and thus it could harm society and its people (Somers,
2019). For this EU is considering the clampdown, peculiarly on the terror video. If these videos
would not be deleted by the social media platforms within an hour then serious action would be
taken by government. The government had passed law for deleting extremist content so that it
couldn't be passed away across world and could become serious course of action among public.
The EU had introduced General Data Protection Regulation (GDPR) which allows companies,
social media firms how data must be store and used by people (Nambisan, Zahra and Luo, 2019).
Another proposed directive which also had created situation of worry about these companies.
They had also implemented Article 13 of copyright directive that had putted responsibility on
these platforms for making sure that these copyright infringing content is not to be hosted on
their sites. And if it would be done then serious action will be taken by government under law
against this social media firm. This could affect their business operations and could distract their
followers. The previous regulation by government on these firms only need social media
platform to remove such content if it is pointed by them (Willcocks, Lacity and Craig, 2017). But
the government had brought out changes in it and restricted them to not publish these extremist
content on their sites.
These government regulations have a negative impact on these firms as its user also get
demotivated if their contents or videos deleted by the companies. The followers of these
companies could follow another social site. This reduces follower of company and could have
restriction on individual that they could not post any of the co0ntentwhich could be harmful for
the society and its people (Gooris and Peeters, 2016). So the individual couldn't post content of
their choice companies due to government regulation had implemented rules on general users of
their social sites as well. So these could affect the overall profit and revenue of company due to
the decrease in their followers. And their brand loyalty among consumer could also somehow
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effect of they wouldn't work in the favour of their followers and imply rules to them that what
they can post and what they couldn't (Okeyo, Gathungu and Peter, 2016). The companies but
anyhow need to follow these rules so that they could safeguard themselves from regulations
which is imposed by government on them.
Describing and explaining how President Trump's approach for economic policy which had
impact on foreign economies that are UK or EU or China-
The president Trump had placed tariffs on the billion of dollar worth goods across world,
specially from China. They had imposed 10% levy on the $200bn worth of Chinese product.
Another it has been announced that imposing 25% tariff on $325bn on the other Chinese goods.
Further they had gained $100bn from tariffs the further it will be used for purchasing US
agricultural goods that will be sent to the “starving and poor countries” for the “humanitarian
assistance”. Trump had announced a 25% tariff on steel import and 10% on the aluminium
(Baker, Bloom and Davis, 2016). As it has been claimed by them that US mostly relies on other
country for its metal, and so it couldn't develop more vehicles or weapons through its own
industry if war broke out. The taxing on foreign steel and aluminium will allow US companies to
purchase local steel for further processing. It will boost up US steel and aluminium industry, as
more other companies will need to purchase their products (Witt, 2016). So at last the price of
steel and aluminium will go up in US as quantity of good which is coming from aboard could
reduce and thus demand for local steel will be raised. This directly affects hike in pricing and
lifting profit for steel maker. Hence, this directly affects the foreign economy of US. And could
have huge economic success. This could have risen in the pricing of finished goods and that can
hurt their consumer. The pricing of car in US could hike and also for other gadget, plane ticket
and also on beer (Demir and et.al., 2018). They have also announced 25% of tariff on the $50
billion on Chinese imported electronic product, machinery and aerospace. It bounds US company
for transferring their proprietary technology to the Chinese firm. So that they could get access to
Chinese marketplace. They had also regularized 25% of tariff on $50 billion of the US export to
China. Somehow this had created a huge impact on the foreign economy of China and US. These
tariffs could be helpful for the growth and development of these country economy (Davis, 2016).
It had direct impact on these as they could develop good and products on their own thus other
companies will come to buy that particular good from these companies. But the European
economy has been slow down in 2018. But the overall growth of US economy has been slow
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down from 2.9% to 2.1% in 2018-2020. Along with that pricing of commodities will also
increase this could have a huge pressure on consumer and thus they would be demotivated to
purchase the goods or not. As already there is situation of inflation in market due to the situation
of Brexit and if there will be hike in pricing of commodities it will directly affects the consumer
(Harrigan, 2018). And it will significantly affect the economy of all the foreign countries that are
US or China or EU.
Discussing and interpreting how emerging economy are creating opportunities for the expansion
of business globally-
Emerging economies are economies which are moving towards becoming the developed
market. This generally take place when more industrialized and embracing of free market
economy. Example for the advance market could be Western Europe and US including UK as
well. These economies will grow large and wide in future and so would have more impact on the
global economies and trade. For example, China is also known as emerging economy many years
before and it started capitalist-style economy. Now it has become third biggest economy in world
after EU and US (Poushter, 2016). It is the biggest exporter across globe. Thus, the emerging
market tends global economy to grow significantly. It allows the global economies to be more
advanced. Developing economies offers a tremendous growth. Investment could help corporate
profit, which tends to have risen in stock. This can create further investment and thus create more
opportunities in the positive feedback. When a country is economically well-established then it
could spend in vast amount on infrastructure and various aspect which could further motivate
and encourage wide amount of the foreign investment. That lead to have rapid expansion and
growth in capital and liquidity as well (Guerrero and et.al., 2016). For advancement, they will
more invest in the global business so that further they can have growth and development in their
economy. By investing in global business they could invite more and more other companies to
trade with their country and thus if economy is rising the more profitable company will be
motivated to invest in these economies (Niebel, 2018). The emerging economies had significant
development in them if they could have even invested in profitable and new business globally as
more and more business opportunities would create a growth in overall countries' economy. The
more advanced economy will in future indicated as the more developed economy. Emerging
economy had almost accounted two-third growth in the world's GDP (Geng, Mansouri and
Aktas, 2017). But along with that economic growth of particular country could vary as per
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substantially. The more productivity is gained by the industries who are working in the emerging
economies and had expanded themselves across the global marketplace. It has been estimated
that contribution of the value added by these global business and out performer company to the
national GDP had also been enhanced rapidly, from the 11% in 1995 and to 27% in 2016 and
thus it had been doubled. So it can be stated that emerging economies had created opportunities
for business to expand the business globally and perform operations worldwide. Somehow this
directly contributes to the growth and development of country as well. This all are inter related
with each other (Esfahbodi, Zhang and Watson, 2016). If economy of country is not emerging
then there will be more opportunities for business that they could enhance their business and
explore further at global level. But it had been growing very rapidly and could be notified with
example countries at present.
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REFRENCES
Books and Journals
Baker, S.R., Bloom, N. and Davis, S.J., 2016. Measuring economic policy uncertainty. The
quarterly journal of economics. 131(4). pp.1593-1636.
Davis, S.J., 2016. An index of global economic policy uncertainty (No. w22740). National
Bureau of Economic Research.
Demir, E. and et.al., 2018. Does economic policy uncertainty predict the Bitcoin returns? An
empirical investigation. Finance Research Letters. 26. pp.145-149.
Esfahbodi, A., Zhang, Y. and Watson, G., 2016. Sustainable supply chain management in
emerging economies: Trade-offs between environmental and cost
performance. International Journal of Production Economics. 181. pp.350-366.
Geng, R., Mansouri, S.A. and Aktas, E., 2017. The relationship between green supply chain
management and performance: A meta-analysis of empirical evidences in Asian
emerging economies. International Journal of Production Economics, 183, pp.245-258.
Gooris, J. and Peeters, C., 2016. Fragmenting global business processes: A protection for
proprietary information. Journal of International Business Studies. 47(5). pp.535-562.
Guerrero, M. and et.al., 2016. Entrepreneurial universities: emerging models in the new social
and economic landscape. Small Business Economics. 47(3). pp.551-563.
Harrigan, J., 2018. From dictatorship to democracy: economic policy in Malawi 1964-2000.
Routledge.
Nambisan, S., Zahra, S.A. and Luo, Y., 2019. Global platforms and ecosystems: Implications for
international business theories. Journal of International Business Studies. 50(9). pp.1464-
1486.
Niebel, T., 2018. ICT and economic growth–Comparing developing, emerging and developed
countries. World Development. 104. pp.197-211.
Okeyo, W.O., Gathungu, J. and Peter, K.O., 2016. Entrepreneurial orientation, business
development services, Business environment, and performance: A critical literature
review. European Scientific Journal October 2016. 12(28).
Poushter, J., 2016. Smartphone ownership and internet usage continues to climb in emerging
economies. Pew Research Center. 22. pp.1-44.
Somers, F., 2019. European Business Environment: Doing Business in Europe. Routledge.
Willcocks, L., Lacity, M. and Craig, A., 2017. Robotic process automation: strategic
transformation lever for global business services?. Journal of Information Technology
Teaching Cases. 7(1). pp.17-28.
Witt, U., 2016. Economic policy making in evolutionary perspective. In Rethinking Economic
Evolution. Edward Elgar Publishing.
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