Introduction to the Business Environment

Introduction to the business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Fiscal and monetary policies and assess the impact of fiscal and monetary policy on the
social media sector as a whole.....................................................................................................3
2. Corporate social responsibility influence on various organisations in Social Media sector....5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Monetary policy is concerned with supply of money which is in circulation and interest
rates. Central government normally use this. Fiscal policies are related to taxes and government
expenditure. Corporate social responsibility is the act where company promises to manage
environment and social responsibility. It includes ethical business practices also. This report will
discuss about fiscal and monetary policies and assess the impact of fiscal and monetary policy on
the social media sector as a whole. Further it will evaluate that how corporate social
responsibility and ethics have shaped the activities of various organizations in social media
sector.
1. Fiscal and monetary policies and assess the impact of fiscal and monetary policy on the social
media sector as a whole.
Fiscal Policies:
Fiscal policy is related to the impact of government spending and on tax related to
demand and economy. Fiscal policy objective is creating healthy economic growth. Fiscal policy
use government expenditure and revenue and influence the economy. It is related to government
spending and taxation. There are three types of fiscal policies neutral, expansionary and
contractionary fiscal policy. Neutral fiscal policy is considered when there is neither recession
nor expansion. Expansionary fiscal policy is commonly used and shows economic growth. It
states that consumer should have more money, so they can spend more. Businesses are also
forced to increase jobs so that supply can increase because demand has increased. State and local
government can't follow expansionary fiscal policy because they are advised to keep balanced
budget whereas contractionary fiscal policy are rarely used. It slows the economic growth and
put out inflation (Khajeheian, Friedrichsen and Mödinger, 2018). If the inflation is for long time
then it can hurt the standard of living and will cause recession. Taxes are increased in this and
spending becomes low. If the fiscal policy is expansionary than it can lead to larger budget
deficit. Expansionary fiscal policy will include low taxes and higher government spending and
also will increase aggregate demand whereas deflationary fiscal policy will decrease budget
deficit. Deflationary fiscal policy will include high taxes and lower government spending and
will decrease aggregate demand.