BM413: Global Business Environment Report - Social Media and Policies

This report delves into the complexities of the global business environment, addressing three key areas. Firstly, it examines the rising risks social media firms face from government regulations, analyzing the potential impact of fines and content restrictions. Secondly, it assesses the effects of President Trump's economic policies on foreign economies, particularly focusing on the impact on the UK due to tariffs and trade agreements. Finally, the report explores how emerging economies present opportunities for global business expansion, highlighting the factors that make these markets attractive for investment and growth. The analysis draws on academic sources and provides a comprehensive overview of the current global business landscape.

Global Business Environment

Table of Contents
Global Business Environment.........................................................................................................1
Rising Risk the global Social media firms face from the proposed or actual government
regulations and possible impact on the firm....................................................................................3
Introduction..................................................................................................................................3
Government Regulations.............................................................................................................3
Conclusion...................................................................................................................................4
President Trump’s approach to economic policy impacts upon foreign economies.......................5
Introduction..................................................................................................................................5
Economic Policies.......................................................................................................................5
Conclusion...................................................................................................................................6
How emerging economies are presenting opportunities for global expansion for businesses........7
Introduction..................................................................................................................................7
Opportunities in Emerging Economies........................................................................................7
Conclusion...................................................................................................................................8
REFERENCES................................................................................................................................9

Rising Risk the global Social media firms face from the proposed or actual
government regulations and possible impact on the firm
Introduction
Social media has become important part of the life of people and results in many ways
some of them are positive and at the same time some of them are negative.
Government Regulations
Users of social media are continuously increasing and along with this regulations and laws for
the companies are also increasing. This is important to regulate unlawful content on the social
media sites. This requires that they are controlled and managed so that its negative impact on
society can be reduced (Tyler and et.al., 2019). Government is taking measures to reduce the
impact of unlawful content on these sites and regulations regarding this British government said
that it want to give regulators the power to fine social media companies for the harmful material
on their platform.
In concern with this government of UK would give UK’s telecommunication watchdog, Ofcom
power to enforce a ‘duty of care’ on companies like Facebook and Twitter ‘to protect its users
from harmful and illegal, terrorist and content related to child abuse’. This will require Social
media companies to be more aware about the content being posted on their sites otherwise they
might get financial penalties. This will also require monitoring actions closely and including this
in their regular functions.
Other than this global firms that allow harmful material to flourish or firms those who d not
remove such content quickly could be sanctioned. Concerned with this government has said that
new legislation will be needed to take it into action. Regarding this officials are working to draft
new law.
Social media platform will have to remove the illegal content quickly and minimize the risk of
appearing such content in failure to do so Ofcom will hold such companies accounted (Ahmad,
Bakar and Ahmad, 2019). Government on such subject that a approach was needed which is

more than a hefty fine this means that it means that government will disrupt activities of
businesses which will fail to comply the regulations will have a threat of prison.
All this suggest that social media platforms like Facebook, Twitter will need to be more careful
and agile in relation with the content on their platform as non compliance of the regulations will
not only harm their financial condition by means of penalty and fine but this also possess threat
such as prison. This will impact the image and their success might get disrupted and other than
this legal actions are anyway not something that companies can and should avoid.
Another part of this is that government will also not ban people from posting and accessing
content which is legal but offensive to safeguard the freedom of expression (Grygiel and Brown,
2019). This also requires that accountability of the firms remain high in relation with selection of
what content should remain and what not.
Conclusion
The above discussion leads to the conclusion that actions which are taken by users in
form of posting and accesing comment but as they are using social media platforms so the
repercussions will be faced by social media sites if they cannot comply the regulations.

President Trump’s approach to economic policy impacts upon foreign
economies
Introduction
President Donald Trump as being president of one of the most powerful economy in the
world makes a great impact on other countries. Their power in US and their economic policies
has affected many countries and their economy and UK is one of them.
Economic Policies
Economic policy of the Donald Trump is characterised by the tax cuts of individual and
corporations, attempts to repeal patient protection and affordable care act, trade protectionism,
immigration restrictions and deregulations which are focused on energy and financial sectors
(Rosyadi and Widodo, 2018). This approach of trump regarding economic policies has affected
economic condition of foreign countries. This specially happens as world economy and local
economies are globalised and this is why contributes in economic development and growth of the
countries. In such case if suddenly policies get changed and economies are not ready for the
change this impact is harmful. One such impact was faced by UK by the economic policy of the
Trump.
This impact was made by decision of Trump to steep tariff against China and re-working trade
agreements against trading partners like Canada, EU and Mexico and as a result 25% tariff on
Steel and 10% aluminium tariff placed on EU and this directly affected UK and the cost on
economy of UK was £389 million per year. This also affected confidence of investors in UK
economy. Though later positive stance was shown by Trump on trade relationship of UK and US
post Brexit.
Though initially impact of Trump’s economic policies was negative and costly for the company
of UK but after Brexit this seems to be easier (Noland, Robinson and Moran, 2016). The reason
is that the potential for exporting food products to UK increased after Brexit as this was earlier
less because of high food safety standards of the EU.

The policies of the president Trump and US-China trade war also impacted car industry of UK
and this was a great impact because 12% of the UK export were from motor industry and as
components have to cross several borders before reaching at the assembly units and each of the
unit faces increased tariffs than this accumulate the cost in the supply chain. This caused a great
trouble for UK.
Along with economic policies of Trump his opinion and perception has also impacted economy
of UK as in July 2018 he issued an statement saying that current Brexit deal would kill all the
chances of UK-US deals in future and the very next day GBP fell 0.61% against USD and also
declined against EUR.
President Trump is an important global figure and tendency to go against his own words and also
love to express his opinions has put the economy of UK into uncertainty (Alim Rosyadi and
Widodo, 2017). There are various factors which decide economy of UK and president Trump’s
stance are also important because of special relation of both the countries.
Conclusion
Above discussion leads to conclusion that though earlier approach of Trump was not god
for the economy of UK and but currently it is improving and possibilities in improving future is
also there.

How emerging economies are presenting opportunities for global expansion
for businesses
Introduction
Emerging markets are those economies which are moving towards being developed
economies from developing economies. Some of the factors which includes in this are their
increasing industrialization and embrace free market economies.
Opportunities in Emerging Economies
Emerging economies have potential to grow larger in future and which suggest their more
significant contribution in global economy. For example earlier China was an emerging market
and presently it is a capitalist economy (Paladini and George, 2019). This country is now third
biggest economy in the world following US and EU and also biggest exporter in the world. Their
influence grows day after day as the label of emerging market applies to the country. Emerging
market and their robust growth of such market and development can lead to such countries
overtake those which are known to be more advanced.
This is their tendency to grow faster which makes them attractive opportunities for global
business to expand their business in such countries. Profits and growth in developed countries
become stagnant after a time and that time they are offered excitement and promise because they
offer growth and this is the reason that businesses see opportunities for global expansion in such
countries. Another aspect of this is that emerging economies are likely to improve their
infrastructure because they are getting industrialized and want to attract global investments and
large amount of foreign investments increase growth and expansion in capital and liquidity in the
economy.
Countries those are most attractive for investment includes many of the countries which are
known as emerging economies (Ekanem, 2017). For example India and China are two countries
in list of top ten countries to receive highest FDI and India and China are both emerging markets
and along with that China also is the biggest exporter in the world. US is the country to invest
highest in the India and US is the country to get highest foreign direct investments.

This suggest that there are various reasons which make Emerging economies attraction for
expansion of business. Emerging economies also have availability of natural resources and
manpower which also reduce the cost of products and increase profitability for the foreign firms.
Operational cost in the emerging economies is also less and this is also a way in which firms can
increase their profit by saving cost of their product. The profit is not limited to reduction and
saving of the cost but opportunity to sell the products is also a way in which Emerging
economies offer opportunity to the firms (He and Karami, 2016). Increasing income and
increasing spending of the people in the emerging markets present an opportunity for global
expansion in such countries.
Conclusion
From the above analysis it can be concluded that emerging economies are more attractive
than developed economies because investment and return in such countries become stagnant and
emerging economies offer growth.

REFERENCES
Books and Journals
Ahmad, S.Z., Bakar, A.R.A. and Ahmad, N., 2019. Social media adoption and its impact on firm
performance: the case of the UAE. International Journal of Entrepreneurial Behavior &
Research.
Alim Rosyadi, S. and Widodo, T., 2017. Impacts of Donald Trump’s Tariff Increase against
China on Global Economy: Global Trade Analysis Project (GTAP) Model.
Ekanem, I.U., 2017. Diaspora entrepreneurship and international market entry strategies in the
emerging economies: a learning process.
Grygiel, J. and Brown, N., 2019. Are social media companies motivated to be good corporate
citizens? Examination of the connection between corporate social responsibility and
social media safety. Telecommunications Policy. 43(5). pp.445-460.
He, C.X. and Karami, M., 2016. International Opportunity Development of Internationalizing
SMEs from Emerging Economies', Global Entrepreneurship: Past, Present & Future
(Advances in International Management, Volume 29).
Noland, M., Robinson, S. and Moran, T., 2016. Impact of Clinton’s and Trump’s trade
proposals. 16-6 Assessing Trade Agendas in the US Presidential Campaign. p.17.
Paladini, S. and George, S. eds., 2019. Sustainable Economy and Emerging Markets. Routledge.
Rosyadi, S.A. and Widodo, T., 2018. Impact of Donald Trump’s tariff increase against Chinese
imports on global economy: Global Trade Analysis Project (GTAP) model. Journal of
Chinese Economic and Business Studies. 16(2). pp.125-145.
Tyler, T and et.al., 2019. Social media governance: can social media companies motivate
voluntary rule following behavior among their users?. Journal of Experimental
Criminology, pp.1-19.