BM461: Global Business Environment Report - Challenges and Policies

This report delves into the intricacies of the global business environment, examining the challenges faced by social media companies due to government regulations, specifically concerning privacy, data protection, and online safety. It analyzes the impact of these regulations on companies like Facebook, Twitter, and Instagram, including financial penalties, changes in policies, and potential impacts on user base and loyalty. The report also explores the economic policies of President Trump, focusing on their impact on China, including trade protectionism, tax reforms, and the resulting trade imbalances and economic consequences. Theoretical perspectives such as the contingency theory and general equilibrium theory are used to provide a framework for understanding the dynamics of leadership in response to government regulations and the broader economic implications of trade policies. The report concludes by summarizing the key findings and implications of these global business environment factors.

Global business environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
a. Risk which is faced by firms of social media from the regulation of government and their
impact on organisation.................................................................................................................4
b. Various approaches of president Trump and their impact to the economic policy of China...5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment refers to the environment of different countries of world
will have various elements outside the organisation, which influence decision making on use and
capabilities of resources in business. This report involves problems faced by the social media
companies like Facebook, twitter and Instagram from various regulation and laws of
government. Different approaches of president Trump's to the policy of economy are explained
in this file which affects the foreign economy of China.
MAIN BODY
a. Risk which is faced by firms of social media from the regulation of government and their
impact on organisation.
Social media companies are facing lots of problem due to different regulation which is
proposed by government. Privacy, data portability and election integrity are some of the factors
which government regulates by their different laws and regulation on the social media. Some of
the social media companies are argued of different regulations which affects the growth of
company because social media is an important part of life of most of the people in the world but
some people does not operate these application in the ethical manner. This will create problem in
the life of other people (Bashith and et.al.,2019). People will share their private information and
pictures on accounts of social media. Due to the problem of online harassment government will
imposed different laws and regulations on social media firms so the Facebook will make the
policies as how they keep women safe in the online.
The laws of government states that social media platforms will have to remove all the
things which is illegal from the sites of Facebook by continuously reviewing the content of
complaints. If these requirements of government are not fulfilled by the company. Then both
company and user have to pay fine of upto € 5m (Social media: How can governments regulate
it?, 2019).
Platforms of social media have to face the problem of fines if they did not delete illegal
factors from the sites within an hour. Government of some countries also introduces regulation
of general data protection which protects the data of people using the social media and if the
company did not provide this facility then it will affect their business largely (Hanousek,
Shamshur and Tresl, 2018).

The companies such as Facebook, Twitter, Instagram faces the risk of criminal penalties
by laws of government and their executives will send to the jail for up-to 3 years. These
companies also face the problems of financial which is 10% about the global turnover of
organisation.
Government makes act of online safety of people with power to delete harassing and
abusive posts on the sites of social media. The head of the E-safety will issue the notices to the
social media organisation to delete the abusive post within 48 hours otherwise they have to pay
fines. This step of government will help the Facebook, Twitter and Instagram to find the
criminals by applying various new technology in their applications.
The impact of government regulations on social media companies that they have to
change their various policy as per the government acts. Company have to pay lots of amount to
government as a fine if they are following their acts and regulation on their sites. The searching
of the people will be limited on these sites because of different regulations which is proposed by
the government (Honea, 2017). These laws of government will give various advantages to the
Facebook, Instagram and Twitter that they will provide more privacy to their users. If proper
privacy as per the regulation of government are not maintained then social media platforms will
decreases their customer base which will leads to the heavy loses in future. By not adopting these
laws in social media companies, then this will decreases the loyalty and trust of users and they do
not feel free to enjoy different sites of social media platforms.
Impact of government regulations will protect the people who are using the accounts of
social media platforms but creates various problems for companies. Different laws of privacy
which is imposed by the government will lead to the loses to the because people are more
comfortable while using their accounts because social media companies like Facebook, Twitter
and Instagram have to invest large amount of money to maintain privacy. For example, If social
media platforms are not applying the laws and regulations of government then it will affects the
image and reputation of business in front of their users. Due to the laws and regulation social
media company have to changes their terms and conditions as per laws which take lots of time
and efforts.
Company will take various major decision related to online harassment and privacy of
social media it requires lots investment which affects the financial conditions of social media
company. Due to cyber criminals image of social media platforms are decreasing and

government will brings various penalties for the companies that will create negative image of
social media platforms because of the cyber criminals.
Theoretical perspective:
Contingency theory states that effectiveness of leader is depend on how their style of
leadership matches with the different situation of business. As per this theory there is no one best
way to lead the company's people. There are various internal and external elements which gives
the best idea to lead the people in different business situations. So success and growth of social
media companies such as Facebook, Instagram are all depend on their leader style of leading the
people as per the situation of business. There is no need of skills and abilities of leader because
government makes various rules and regulations on continuous basis and the leader lead their
team according to the situation to minimize the risk. For example, leader of Facebook lead their
subordinates by so that they will run their business operation according to the laws of
government to reduces the problem and risk government penalties and fines.
b. Various approaches of president Trump and their impact to the economic policy of China.
Economic policy of Donald Trump is to make the America great again. Trump makes the
various approaches which affects the economy of china and creates tension between the largest
economy of world's countries. The different economic policy of Trump focuses on the
protectionism of trade, immigration reduction and tax reforms of corporate and individuals (How
Will Donald Trump’s Policies Affect Trade With China?, 2016). His approach is also to clean
power plan by reviving the coal companies. The aim of Donald Trump is to decrease the deficit
of trade by shifting the policy of trade from the different agreements of free trade to the deals of
bilateral trade. Trade war will highly damages of both the business and customer of both the
countries and it will affect the growth and success of both economy.
For example, to protect the US Trump will take the various actions to protect the
economy of nation at the time of war between the china and US. Policy of Trump will follow the
nationalisation of economy of country (Vought, 2017). Trump promised the people of country to
cut the rates of taxes from 35 to 15%. Economic policy of Trump has three main factors so the
first one is the disconnection between the intent and impact. The large taxes of corporate are
deleted by the politician which increases the level of competition and affects the profitable
companies of China.

The impact of Trump economic policy in China is affects the economy of China by
deficit budget, monetary policy, tariffs. Trade and supply chains will get diverted to the higher
cost Chinese producers from the low cost in China (Xiujun, 2018). People of China will faces the
problem of increase in taxes which will increases the problem of high inflation in country's
economy. Economic policy of trump will have negative impact on the economy of china that will
decreases the supply of products and services from country. There is increase in the rate of taxes
will decreases infrastructure spendings of customer. Donald Trump will increases the chance of
loses of Chinese companies in the by making the new economic policy. The strategy of Donald
Trump will makes the better US in world and decreases the chances of other company to grow in
future (Mark, NAITOi and ITO, 2017). Policy of free trade of trump will brings unemployment
in China because people will faces the problem of job loses.
Theoretical perspective:
General equilibrium theory refers to the analysis and evaluation of different variables of
economy and interrelations and interdependence which helps to understand economic system of
country. As analysis from this theory the policy of free trade of Donald Trump will brings
together effects and causes of changes in quantity and prices of products and services of whole
economy of China. There is no equality in demand and supply of products of Chinese company
due to the free trade policy of Trump. Customer will not get satisfied by the products and
services which affects the Chinese economy.
CONCLUSION
From the above study it can be concluded that various challenges faced by social media
companies in their business operations related to their privacy policy, data integration etc. Global
environment of business refers to the environment of the various countries in which people
operates their accounts of social media so that they will connected with the people loving in
different countries. Trump makes various economic policies which enhance the success and
growth of the economy of country. Economic policies of different countries are also affected by
the new policies of Trump. The aim of the Trump is to make the economy of US best in the
world so he makes various approaches as per the economic policy.

REFERENCES
Books and Journals:
Bashith, A. and et.al.,2019. Business strategy and innovation in weather anomaly entering mea
and cafta in the ‘BREM” industrial business centre in Madiun East Java Indonesia.
Hanousek, J., Shamshur, A. and Tresl, J., 2018. Innovation Decisions in Uncertain Business
Environments of CEE Countries. POLITICKA EKONOMIE.66(3). pp.287-301.
Honea, H., 2017. MKTG 476 Marketing and Business in Networked Environments.
Mark, M.A.T.S.U.N.E., NAITOi, H. and ITO, T., 2017. Acquiring English Communication
Skills in Global Business Environments.
Vought, W.X., 2017. E-leadership in practice: The components of transformational leadership in
virtual business environments.
Xiujun, X., 2018. Global Economic Governance: China Finds Its New Role. China Int'l Stud.68.
p.108.
Online:
How Will Donald Trump’s Policies Affect Trade With China?. 2016. [Online]. Available
Through:<https://www.fxcm.com/uk/insights/how-Trumps-policies-affect-trade-china/>
Social media: How can governments regulate it?. 2019. [Online]. Available Through:
<https://www.bbc.com/news/technology-47135058>