Fiscal and Monetary Policy Impacts on Social Media Sector

Introduction to Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO4..................................................................................................................................................3
Fiscal and Monetary Policy and its impacts of on Social Media Sector -..................................3
LO5. ................................................................................................................................................5
Corporate social responsibility and ethics have shaping the activities of various organisations
in Social Media sector..................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Social Media is the computerized technology that assist the sharing of information, ideas
and thoughts by building virtual network and communities. It attributes user generated content
and customize profiles. Now-a days social media play essential role as it allows to increase the
reach, nuture and engage with the target audience anywhere in the world. Businesses today use
social media platform to generate brand awareness, to increase its sales, revenues and leads.
This report addresses about knowledge and understanding of Fiscal and Monetary policy and
impact of monetary policy and fiscal policy on social media sector as a whole. It also evaluates
and analyse with the examples how corporate social responsibility and ethics have shaped the
activities of various organizations in Social Media sector.
MAIN BODY
LO4.
Fiscal and Monetary Policy and its impacts of on Social Media Sector -
Fiscal Policy-
Fiscal policy refers to policy by which government regulates its spending levels and tax rates to
observe and influence a country's economy (Bauer and et.al., 2018). Fiscal policy is carried out
for two reasons -
 To maximize demand and economic growth for that government of country basically cut
the taxes and increase spending which leads to higher budget deficit.
 To minimize demand and decrease inflation for that government increases tax rates and
cut spending which leads to smaller budget deficit.
The following are the three types of Fiscal Policies – Expansionary fiscal policy, neutral fiscal
policy and Contractionary fiscal policy.
Expansionary Fiscal Policy – It is used by government to promote growth during an economic
recession or downturn. This policy usually involves greater spending in excess tax revenues than
during normal period especially on measures that increase employment (Belke, Dubova, and
Osowski, 2018).
Contractionary Fiscal Policy – This policy is used in period of during high economic growth and
full employment on expanding economy especially when there is concern of rising inflation.
Neutral Fiscal Policy – Fiscal policy can also be determined as neutral when the level of
government spending in relation to tax revenue is stable over the period.