Report: Global Business Environment and Emerging Economies

This report offers a comprehensive analysis of the global business environment, focusing on key aspects such as emerging economies, government policies, and the impact of regulations on social media firms. It begins by defining emerging economies and highlighting their importance in international business, particularly for multinational companies seeking expansion and growth. The report then delves into the opportunities these economies offer, including open markets, increased purchasing power, and the role of Foreign Direct Investment (FDI). It also examines how governments in emerging economies attract globalized companies through incentives and supportive policies, using India and China as case studies. The report further investigates the risks faced by social media firms due to government regulations, specifically addressing the impact of GDPR on data protection and user engagement. Finally, it explores the role of fiscal and monetary policies in stimulating economic activity and growth, including their impact on stabilizing economic reforms, controlling inflation, and attracting companies, with a focus on the UK's approach. The report concludes by summarizing the key findings and implications for businesses operating in the global environment.

Global Bussines
Environment
Table of Contents

MAIN BODY........................................................................................................................................3
Emerging economies are presenting global expansion to business....................................................3
Introduction...........................................................................................................................................3
Main Body.............................................................................................................................................3
Conclusion.............................................................................................................................................4
Rising risk from global social media firms from government regulations.........................................4
Introduction...........................................................................................................................................4
Conclusion.............................................................................................................................................5
Fiscal and monetary policies of government to stimulate economic activity and growth..................6
Introduction...........................................................................................................................................6
Main Body.............................................................................................................................................6
Conclusion.............................................................................................................................................7
REFERENCES......................................................................................................................................8

MAIN BODY
Emerging economies are presenting global expansion to business
Introduction
Emerging economy is defined as all such economies that are not well established and
rich economies and going through major rapid changes related to economic development.
Importance of emerging economies is huge in international business as they provide immense
business development opportunities to multinational companies. All the multinational
companies and such organisations looking for globalising the business aims to expand the
business in emerging economies as they caters growing market to improve the profitability
and growth potential of such companies. India and China are among the most emerging
economies around the globe. China consists up the GDP growth rate of around 6.6%. India
carries the GDP growth rate of approximately 6.8% (Chuliá and et.al., 2017).
Main Body
Emerging economies provides business development an growth opportunities to big
companies engaged in globalisation of the business units to come and invest in such
economies. Emerging economies caters the open market for business. Open market creates
huge profitability opportunities by meeting the needs of people. In emerging economies due
to economic growth the per capita income of people also improves which provide
opportunities to multinational companies to utilise the purchasing capacity of peoples in
emerging economies. FDI in an indicator of how many foreign companies are entering in the
market of emerging economies (Delafrooz, Zendehdel and Fathipoor, 2017). FDI is denoted
by foreign direct investment. This indicator shows how aggressively the globalised
companies are entering into the business environment of emerging economies. Investment
made by such big corporate in order to expand the business facilitate the market of emerging
economies in form of advanced products and services. This also improves the employment in
such emerging company. As such companies need skilled human resources to meet different
designation roles in such business units. Globalisation also improves the innovation in
emerging economies which also creates further growth opportunities in such economies.
Government in emerging economies caters many advantages to attract globalised companies
to invest in such economies. Benefits received by such companies in form of facilitation in
land and infrastructure development, taxation benefits easy regulations and other associated

advantages that provide ease to such companies in expanding the business in emerging
economies.
Emerging economies like India. Government in India are well supportive towards
improving the FDI potential of country. Government has launched many campaigns like
Make in India initiative which aims globalised companies to come and operate business
operations in India. Government also provide ease in regulatory requirements to facilitate
companies in establishing businesses in India. China is also the most emerging economies in
the world. China has emerged rapidly due to major commercialisation in country (Garcia-
Morales and et.al., 2018). Government in China attracts international companies to invest in
the Chinese market in order to expand the business. China government supports such
companies by catering skilled employees, ease in establishing business and by supporting
other benefits. Both the countries has some common factors also. Both countries are
emerging in nature which ahs also improved the purchasing capacity of the people. In both
countries with the effective rate poor class background peoples has entered into the middle
class and upper middle class which caterd huge business development opportunities to
multinational companies.
Companies like Google, Apple, BMW has expanded the business in India and China.
Many other companies have also channelized the business development opportunities in such
countries.
Conclusion
Above brief report explain about the emergence of economies and its benefits to
globalised business organisations. China and India are among the major growing economies
provided business expansion opportunities to many multinational companies like Google and
others. GDP growth rate of both the country is also effective.
Rising risk from global social media firms from government regulations
Introduction
Social media firms are denoted all such companies who engaged with social
connectivity over internet with support of application networks. Government in United
Kingdom has launched the online safety rules to ensure the security of users involved in
different social media applications like Facebook, Instagram and other applications (Sahuc

and Mouabbi,2019). The rule issues by government play an important role in improving the
security of social media users.
Impact of general data protection regulation
European Union has launched the new regulation in April, 2016 in form of General
Data Protection Regulation (GDPR). In order to ensure the data protection over different
social media networks European Union could come across this solution. This regulatory
compliance enables social media firms like Facebook, Instagram and others to improve the
data protection standards in order to ensure the data protection of users. After this regulatory
compliance the number of users in European Union is not affected much for Facebook and
Instagram and other social media firms. GDPR could also improve the user base for different
social media networks as it improved the data protection assurance for all users. Social media
firms like Facebook, Instagram and other has received an effective response of new users in
Europe after this compliance which has also improve the revenue channels for such firms
(Forte and Magazzino, 2016). Social media marketing has also improved after the GDPR.
Apart from all positive impacts GDPR has also negatively affected the businesses of
Facebook, Instagram and other social media sites. All such companies needs to upgrade the
infrastructure to meet the regulations of the GDPR. This could leads such companies to invest
its financial resources in upgrading the systems.
Stakeholders are the crucial part of the business organisation. Stakeholders are
denoted by all such entity’s associated with the business organisation in any form. All
companies reveal the list of its major stakeholders like investors, employees and other
stakeholders. The regulation of GDPR do not affected much in term of protecting the
stakeholder’s details.
Conclusion
The above report has summarised the impacts of GDPR over the social media firms
like Facebook, Instagram and others. GDPR has positively impacted the business operations
of all social media applications like Facebook, Instagram in form of increased traffic over
these applications. It also provides opportunities to such organisation to strengthen the data
protection of all its users.

Fiscal and monetary policies of government to stimulate economic activity and growth
Introduction
Fiscal policy is a governmental policy in which government aims to boost the
economic growth by adjusting in its spending levels and taxation rates. The objective behind
the fiscal policy is that government can stabilises the business cycle and regulate the
outcomes of business by adjusting in its economic reforms.
Monetary policy is a macroeconomic policy. Government policies related to supply
chain of money in the economy is called as monetary policy. It also involves interest rates
and currency demands.
This part of the report will project the role of monetary and fiscal policy in order to
boost the economy. Furthermore report will also analysis the role of monetary and fiscal
policy in respect to United Kingdom.
Main Body
Monetary and Fiscal policy role in economic boost
Monetary and fiscal policies play the following role in boosting economies. The
impacts of both the polices can be summarised in following manners.
Stabilise economic reforms: Objectives behind framing monetary and fiscal policies is to
stabilise economic reform of country. Both the policies drive government to improve the
economic stability in the country. Stable situation of economy improves the growth rate of
GDP in country. It also positively affects the currency exchange rate in favour of the country.
Control inflation: Inflation is the key barrier in the economic stability of country. Monetary
and fiscal policies enable governments in controlling inflation in the country. Inflation
restricts the purchasing capacity of peoples in society (Hassan, Williams and Jaiswal, 2018).
With the support of fiscal and monetary policies government controls the rate of inflation
which also improves the value of currency. It directly improves the purchasing capacity of
peoples in country. Controlled inflation rates also attract the multinational companies to
invest in the country.

Attract companies: Monetary and fiscal policies improve the capabilities of government
financial reforms. It also involves interest rates. Effective interest also improves the business
environment in country. All multinational companies look for business expansion in such
countries that provide well stable economic flow and interest rates. Both the policies directly
improve the foreign direct investment rates in country.
The above roles are among the primary impacts fiscal and monetary policies play in
improving the economic growth of the country.
Role of monetary and fiscal policy in United Kingdom
In UK monetary policy is assigned to monetary policy committee of the Bank of
England. The committee has set the inflation rate of up to 2% (Qiu, Liu and Gao, 2017). In
case the inflation rate in country goes higher than the estimated rate of 2% than it will hike
the interest rates in country to control the rising nature of inflation in economy. Government
has set budgets precisely to meet different needs of nation as a part of the fiscal policy of
government. Government also restricted he interest rate in a certain limit to control the flow
of currently in economy. Government also focused over reducing budget deficits in its
policies. Government has provides ease to businesses in form of interest rates in order to
improve the employment opportunities in UK.
Conclusion
The above report has denoted about the role of monetary and fiscal policy in the
economic growth of country. Both the polices play huge role in improving the value of
currency and also to stable financial reforms of country. UK government has framed well
effective fiscal and monetary policies by aiming to improve the currency value by controlling
inflation. Government has also aimed to improve the business environment by catering
advantages to companies inform of interest rate and other advantages.

REFERENCES
Books and Journals
Chuliá, H. and et.al., 2017. Impact of US uncertainties on emerging and mature markets:
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Delafrooz, N., Zendehdel, M. and Fathipoor, M., 2017. The Effect of Social Media on
Customer Loyalty and Company Performance of Insurance Industry. International
Journal of Economics and Financial Issues. 7(3). pp.254-264.
Forte, F. and Magazzino, C., 2016. Fiscal policies in EMU countries: Strategies and empirical
evidence. Journal of International Trade Law and Policy.
Garcia-Morales, V. J. and et.al., 2018. Influence of social media technologies on
organizational performance through knowledge and innovation. Baltic Journal of
Management.
Hassan, S. S., Williams, G. A. and Jaiswal, A. K., 2018. Emerging technologies for the
pretreatment of lignocellulosic biomass. Bioresource technology. 262. pp.310-318.
Qiu, S., Liu, X. and Gao, T., 2017. Do emerging countries prefer local knowledge or distant
knowledge? Spillover effect of university collaborations on local firms. Research
Policy. 46(7). pp.1299-1311.
Sahuc, J. G. and Mouabbi, S., 2019. Evaluating the Macroeconomic Effects of the ECB's
Unconventional Monetary Policies. Journal of Money, Credit and Banking.