Impact of Monetary and Fiscal Policy on Business Environment and CSR, Ethics, Regional and Global Factors Shaping Facebook's Activities

INTRODUCTION TO BUSINESS
ENVIRONMENT

CONTENTS
INTRODUCTION......................................................................................................................1
IMPACT OF MONETARY AND FISCAL POLICY ON THE BUSINESS............................1
Understanding about fiscal and monetary policy...................................................................1
Impact on business.................................................................................................................1
HOW CSR, ETHICS, REGIONAL AND GLOBAL FACTORS SHAPES THE ACTIVITIES
OF FACEBOOK INC................................................................................................................3
SUMMARY & CONCLUSION................................................................................................5
REFERENCES...........................................................................................................................6

INTRODUCTION
Business environment is collection of all external and internal factors which can
impact the company's business operations and it also involves competitors, stakeholders,
customers, rules and regulations, customer trends and other technological factors. The
purpose and aim of this report is to assess the impact of monetary policy and fiscal policy.
The present study will be based on popular social media platform Facebook. In addition to
this, it will provide detailed information on how regional factors and global factors as well as
corporate social responsibilities impact the business operations and activities in the company.
IMPACT OF MONETARY AND FISCAL POLICY ON THE BUSINESS
Understanding about fiscal and monetary policy
Fiscal policy- It addresses government spending and taxation which is generally determined
by the rules and regulation of government. They decide about the tax rates in the country and
a small change in this policies may impact the business operation of the firm. This policy has
an impact on the budget deficit.
Monetary policy- It addresses the supply of money and interest rates in circulation, basically
this policy is managed by central bank of the country. A slight change in the monetary policy
might affect the business activities. This policy has an impact on the borrowing in an
economy.
In the case of the UK, these policies is decided by the Bank of England, Therefore,
the company needs to keep track on changing policies, regulation and legislation (Chugunov
and et.al., 2021). The UK monetary policy is maintained to meet the target related to inflation
of 2% which helps them to achieve successful growth and sustain employment.
Impact on business
Economic growth and development of the country is driven by various factors like
population growth, technological change and human capital. It has been noted that both fiscal
and monetary policy are used in order to regulate the activity of economy. An effective
executed monetary policy and fiscal policy can be beneficial for economic growth. While on
the other side poorly executed policies can persistently impede economic growth and
development. They are used in order to enhance growth and development (Bonam and
Lukkezen, 2019). It can be used to redistribute wealth and increase the income level of
people. Both of the policy is capable of affecting the long run price level via the money
creating procedure. When the bank raises its rates all the company tweak the rates they
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