Global Business Environment Report: BM413, Faculty of Design, 2019-20

This report offers a comprehensive analysis of the global business environment. It begins by examining the risks faced by global social media firms due to government regulations, exploring the impact of these regulations on business operations and freedom of speech. The report then delves into the economic policies of the Trump administration, assessing their effects on foreign countries and international trade. Furthermore, it identifies and analyzes the opportunities that emerging economies present for business expansion, highlighting key characteristics such as high economic growth, a growing upper class, and a talented workforce. The report concludes by summarizing the key findings and emphasizing the importance of understanding the global business environment for successful business practices and expansion. The report also includes references to the sources used.

Global Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
A. Risks global social media firms face from government regulations.......................................3
B. Trump's economic policies and their impact on foreign countries.........................................4
C. Opportunities in emerging economies for business expansion...............................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment can be defined as environment or factors that influence any
businesses or organization heavily. Those factors include legal or political factors, economic or
labour factors, technological factors, competitors in particular economies etc. This report
includes how these factors affects global social media firms and what opportunities do emerging
economies offers, and also how Trump's economic strategies affects world.
MAIN BODY
A. Risks global social media firms face from government regulations.
Many countries including USA, Europe, India or China etc, are now heavily controlling
the operations of giant social media firms such as Facebook, Twitter, Instagram etc. Because of
concerns regarding data leaks, privacy of users, misuse of these firms in influencing any
economy and their citizens (Wenguang and et.al., 2018). This hugely affects there businesses in
different economies. Major countries in which these social media firms have large amount of
market share are keen on suppressing or limiting the platform's usage by citizens. They are
introducing strict regulations and propositions for these firms. The factors which required
government to impose regulations are rapid spread of fake news, conveyance of misinformation,
increasing spammers and fake accounts, increasing cyber crimes such as bullying or harassment
(Loukis, Charalabidis and Androutsopoulou, 2017). Many governments have proposed that
anytime it can order investigation into any social media firm about hrier business policies, if they
found any serious concern. Some regulations force these social media firms to obtain permission
before using any informations of them. Social media firms can also face monetary losses, if they
are found guilty in breaking any regulations. Some legislatures also proposed regulation which
restricts posting of political and other advertisement on these social media firms, and also
ensures that foreign economies are not governing those ads. There are such regulations too which
orders these firms to identify and control the accounts which are considered as 'bots'. Some
provisions will also force the social media firms to disclose about the information they collect
from user's and how they use or share them. Government also has made laws that can demand
about company's business policies any time. Government of different economies are also planing
to propose regulations like implementing strict guidelines on data flow process, making company
responsible for users data. These regulations also forces company's to remove appropriate
content and provide justification for that content. Social media firms also has to delete accounts

of several people that incites violence or engaged in unlawful activity on the request of
governments of different economies. Also, some government will allocate a supervisor, which
will be observing activities on social media and will analyse how the firm's region head are
controlling them. That supervisor will also be given some special authority to take legal action
on these firms.
These regulations enacted by various government or proposed regulations, impacts
hugely on these social media firm's businesses. These social media firms finds some regulations
supporting while some damaging their business activities (Drummond, McGrath, and O'Toole,
2018). They also found that some regulations also affects freedom of speech of their users. If
they violate any laws or regulations they have to pay heavy fines. Paying heavy fines, involved
in monetary losses will also affects company; reputation. It is also difficult for any social media
firm to be comfortable with all policies of government of different countries. Due to these
policies, some social media firms also face ban or blocking or restriction from countries, which
will widely impact their businesses here and will present there negative image.
B. Trump's economic policies and their impact on foreign countries.
Trump is the president of United States of America. No one will deny the fact that US is
considered global super power country. Some also believe it is more powerful and important
economy than Europe, UK, Germany or Japan. US' policies and laws and regulations widely
effect whole world. US is a centred country for many countries. After Trump took control of
White House, US's policies changed completely, which also affected other countries economies.
Trump introduced 'America first' economic strategy, and made policies which were beneficial for
only USA and not for other emerging economies (Kroenig, 2017). Trump's major decision and
policy success was cutting down tax of $1.5 trillion which gave benefits in investment to people
of different economies. Generally, Trump's economic strategies and other policies are also
considered harsh sometimes, which proved to be disastrous for many foreign economies. For
example, Trump economic policy increased tariffs on electronic items from 30% to 50%, also
introduced tariff on metal sector too, which impacted on several countries including European
Union. Then the administration also increased tariffs on products imported from China, that
resulted in trade war with China, then China too introduced tariffs to retaliate back. But this trade
war impacted on China heavily, resulted in heavy drop in manufacturing sector of China. Also,
China is major exporter of goods to US, and this trade war resulted in loss of export rate to 12%.

Trump also withdrawn US from Trans-Pacific partnership, which affected other countries.
Trump also left Iran deal, that resulted in scratching EU economy, because this move added
more volatility in EU markets.
C. Opportunities in emerging economies for business expansion.
A country which is considered as emerging, possess potential and characteristics of a
developed country, but not yet has been recognized as developed country. Emerging economies
are considered to be the highest opportunities' provider in order to expand businesses globally.
Below are some characteristics of emerging economies that presents opportunities for global
business expansion.
Less than Average Income: emerging countries' citizens generally have less than average per
capita income. This factor contributes in quick growth of markets, which can be proved to be
beneficial for the business expansion.
High Economic Growth: According to several reports, it is concluded that emerging markets
will be growing twice as quick as developed countries, which will help businesses to quickly set
up and catch growth (Knudsen, 2018). For example, the economic growth of developed countries
such as USA, Japan, etc was around 3% in 2018-19. While emerging markets such as China,
India witnessed economic growth of around 7%.
Diversification: To safeguard any business from market uncertainties or crisis in the future, the
businesses should be expanded to different emerging economies. In case, if businesses incur
losses from one country, that can be compensated by gaining profits from different economies.
Increasing Upper Class Population: Emerging economies generally do not offer premium and
luxury products or services. With the advantage of growing upper class population, businesses
can start to offer their luxury services and products which can be demanded by the growing
upper-class population.
Lacks in particular Segment: As emerging economies are not considered to be developed
countries, because of the reason that they lack in some segments, and are dependent on other
economies for the same (Ekanem, 2018). This could be beneficial for businesses to identify the
needs of emerging economies and start to supply or help the established organization there.
Research and Development: This is important process after manufacturing of a product or
development of a service, that is to test their operations before launching to the markets.
Emerging markets are considered as big laboratory for efficient research and development.

Talented Workforce: Several studies founded that generally emerging economies offers
younger population than developed countries. Because of low average income, businesses can
easily hire talented people from these economies at a very cheap rate. They will also help
investors to know about market trends, cultures etc. For example, median age in Philippines is
23, this provides large number of young and qualified workforce that is essential for business
expansion.
Highly Volatile Market: Quickly growing economies and changing trends cause market
atmosphere to become volatile (Gay, 2016). These volatilities can help businesses to grow and
expand in these emerging economies.
Space for Growth: These economies needs large amount of capital or foreign direct investments
into their economies. So if investors research and analyse type of investment needed in these
economies in order to expand their business activities, they can benefit hugely from this. This
results in high amount of return for the investors.
All these factors or characteristics of emerging economies contribute in presenting
opportunities for business expansion globally.
CONCLUSION
This report concluded about global business environment, and stated external factors that
affects business practices. Also, analysed risks that global social media firms faces from
government regulations and their after effect. It also stated economic policies of Trump and
analysed their impact on foreign economies. Then, further analysed opportunists emerging
economies offered such as high economic growth, highly volatile market etc, for global business
expansion.

REFERENCES
Books and Journals
Wenguang, Y. and et.al., 2018. PARADIGMS OF INTERNET REGULATION IN THE
EUROPEAN UNION AND CHINA.
Loukis, E., Charalabidis, Y. and Androutsopoulou, A., 2017. Promoting open innovation in the
public sector through social media monitoring. Government information
quarterly. 34(1). pp.99-109.
Drummond, C., McGrath, H. and O'Toole, T., 2018. The impact of social media on resource
mobilisation in entrepreneurial firms. Industrial Marketing Management. 70. pp.68-89.
Knudsen, J. S., 2018. Government regulation of international corporate social responsibility in
the US and the UK: How domestic institutions shape mandatory and supportive
initiatives. British Journal of Industrial Relations. 56(1). pp.164-188.
Ekanem, I., 2018. Understanding internationalisation approaches and mechanisms of diaspora
entrepreneurs in emerging economies as a learning process. International Journal of
Entrepreneurial Behavior & Research.
Gay, R. D., 2016. Effect of macroeconomic variables on stock market returns for four emerging
economies: Brazil, Russia, India, and China. International Business & Economics
Research Journal (Iber). 15(3). pp.119-126.
Kroenig, M., 2017. The Case for Trump's Foreign Policy: The Right People, the Right
Positions. Foreign Aff. 96. p.30.
Online
Bloomberg., 2018. Trump’s America First takes a heavy toll on the world economy. [Online].
Available Through :
<https://economictimes.indiatimes.com/news/international/business/trumps-america-
first-takes-a-heavy-toll-on-the-world-economy/articleshow/66143018.cms>.