Global Business Environment Report: Analyzing Global Business Issues

This report, submitted by a student, examines key aspects of the global business environment. The first part of the report focuses on the government regulations of social media, discussing the challenges governments face in controlling content, the impact of regulations on social media operations, and the implications of government actions. The second part analyzes the economic policies of Donald Trump, specifically addressing the US-China trade relationship and the current trade war, and the withdrawal of the USA from the Trans-Pacific Partnership. The report explores the consequences of these policies on both the involved countries and the global economy. The report concludes with a discussion on the challenges and potential outcomes of these global business issues.

Running Head: Global Business Environment
Global Business Environment
Report
MAY 31, 2019

Global Business Environment 1
TASK-1 (Ques. a)

Global Business Environment 2
Table of Contents
TASK-1 (Ques. a)..........................................................................................................................................2
Introduction.................................................................................................................................................2
Government regulations on Social media....................................................................................................2
Conclusion...................................................................................................................................................3
References...................................................................................................................................................4

Global Business Environment 3
Introduction
The use of social media in the modern days become the part of human life. People cannot live
without the social media channels like Facebook, Instagram, Twitter etc. However, the many
government is planning to regulate the social media channels because of their harmful contents.
Many government has imposed fines or block the social media services that do not follow the
rules and regulations of the government. This report based on these regulations and its impact on
the social media channels. The report discusses the impact of these regulations on the social
media operations.
Government regulations on Social media
In present time, all the social media channels have their own governance policy to control the
content and any unethical or illegal activities. The social media channels such as Facebook and
YouTube largely depend on their own self-governance policy and control the content according
to their own rule (Kumar and Pradhan, 2018). However, the major problem is here that every
government has their own rules and regulations related to social media and these social media
channels have to regulate their own policies according to the local government where they
operate the business. However, the government regulations regarding the unethical contents like
terrorist videos, sexual contents, or any sensitive information that leads to a problem for the
people in a country should be regulated, and many government does it. China never allowed
Facebook in the country. However, Facebook has said that many sensitive or harmful content
(almost 99.93%) are automatically detected and deleted by the Facebook detection technique
(Brown and Peters, 2018). However, people still share and sends immoral and unethical videos
on these social media sites.
The linkage of Facebook to influence the US presidential election in 2016 was one of the big
news where Facebook user data ware leaked by the Cambridge Analytical and try to influence
the presidential election in 2016 (Szegedi and Sganga, 2018). Apart from this, a Russian Internet
Research Agency was also blamed that they used the FB Data to influence the US presidential
election. The ‘Interment Research Agency’ of Russia used the Facebook, Google, YouTube sites
to so the fake adds to the millions of users about the presidential election. However, these all
three sites were then taken under the scrutiny of USA government and the USA brings a law

Global Business Environment 4
against them. It was really a challenge for these social media sites to face such type of
happenings on the sites. However, the proposed rules and regulations to control the activities of
these social media channels will really affect their freedom of business operation in many
countries (Chiou and Tucker, 2018).
However, a major concern is that many terrorist groups uses the social media as their
communication tool and it is so difficult for the government to trace such terrorist activities as
the control of these social media channels relies in the hand of social media channels rather than
government. Therefore, many government wants to regulate the social media channels in the
country and it will be really challenging for these social media channels. Another regulation that
government want to implement is related to taxation. Facebook, YouTube, Twitter and Google
are operating their social media channels in various countries and collect a huge amount of
revenue from their users and displaying advertisements to the users. However, these companies
fail to repay the tax related to their service and earnings from the country. The government want
to regulate the activities of social media channels because government expect that these social
media channels pay the real taxes in the country (Rahwan, 2018).
Conclusion
In the conclusion, it can be said that there are many unethical and illegal practices has been
operated by the social media channels in the past and these channels are still doing some
unethical practices such as showing harmful contents, allow terrorists to use the social media
channels, tax theft, and even create issues related to user’s privacy. These acts of social media
channels force the government to regulate these sites or block them in the country. The impact of
these regulations will be really strict for these channels if they will stop these unethical practices.
However, blocking these social media channels will also impact their business operation and
reduces the number of users, which is the major source of their income.

Global Business Environment 5
References
Brown, N.I. and Peters, J. (2018) Say This, Not That: Government Regulation and Control of
Social Media. Syracuse L. Rev., 68, p.521.
Chiou, L. and Tucker, C. (2018) Fake News and Advertising on Social Media: A Study of the
Anti-Vaccination Movement (No. w25223). National Bureau of Economic Research.Jang, S.M.
and Kim, J.K. (2018) Third person effects of fake news: Fake news regulation and media literacy
interventions. Computers in Human Behavior, 80, pp.295-302.
Kumar, V. and Pradhan, P. (2018) Trust management issues in social-media marketing. In Social
Media Marketing: Breakthroughs in Research and Practice (pp. 714-732). IGI Global.
Rahwan, I., (2018) Society-in-the-loop: programming the algorithmic social contract. Ethics and
Information Technology, 20(1), pp.5-14.
Szegedi, M. and Sganga, C. (2018) FACEBOOK, TWITTER, YOUTUBE AND THE OTHERS:
OUR ONLINE REPRESENTATIVES WITH AND WITHOUT FREE SPEECH IMMUNITY.

Global Business Environment 6
TASK-2 (Ques. b)

Global Business Environment 7
Table of Contents
TASK-2 (Ques. b)..........................................................................................................................................0
Introduction.................................................................................................................................................0
Withdrew of USA from Trans-Pacific Partnership........................................................................................0
US-China Trade Relationship and Current Situation of Trade War..............................................................0
Conclusion...................................................................................................................................................1
References...................................................................................................................................................2

Global Business Environment 8
Introduction
The current economic policies of Donald Trump mainly focus on establish a trade balance with
its trade partners such as China, and UK. The latest hike in tariff barriers by Donald Trump for
China is creating a situation of trade war between the two big economies of the world. In last
few months, the president of USA has taken many economic and foreign policy decision that will
impact the global economy including China, India, UK, EU, etc. This report analysis the impact
of these economic decisions of Trump on other economies and how these decisions affect the
global economy and peace.
Withdrew of USA from Trans-Pacific Partnership
President Donald Trump withdrew its membership from the Trans-Pacific Partnership without
any declaration of its replacement. Trump is also looking for withdrew from North American
Free Trade Agreement (NAFTA). USA continuously increasing its tariffs on exported items and
imposed levies on the imported steel and aluminum and on other products from China, Mexico,
and Canada etc. (Lilly, Díaz, and McDaniel, 2019).
US-China Trade Relationship and Current Situation of
Trade War
Donald Trump’s approach towards balancing the trade with China and other countries will not be
a great news for the whole world as it enhances the chances of world trade war between two
super powers and giant economies of the world. The result of his economic policies leads to a
danger for the global economy as two major trade partners are fighting with each other and the
other small economies will suffer because of their trade fight (Odell, 2019). Trump’s decision to
hike the tariff rates with China will lead to decrease in the supply of products from USA to China
which further leads to a decrease in domestic demand in the China. The decrease in domestic
demand will adversely affect the world economy as large number of small countries and
developing countries like India depends on Chinese exported goods and service. However, the
hike in tariff rate with China will impact the both countries and their economies (Eichengreen,
2019).

Global Business Environment 9
The major impact of Trump’s economic decision was on China. However, when China retaliate
against the US decision and boycott the US farm goods, the Trump government provide money
to the US farmers as bailout package for them (Lukin, 2019). The major problem with Trump’s
decision is that he wants to control everything on political level rather than economic or financial
level. The various theories of trade and economy says that the trade relationship should be done
on the basis of needs and requirement of the partner countries. However, the trade relationship in
USA is now regulated by the government with another government. The current Trump decisions
force the manufacturing sector to tear up their existing supply chain and make the manufacturing
products and process more expensive (Kazun and Kazun, 2019).
The hike in tariff plans, restricted the countries to export products to USA and imposed heavy
levies in the imported products, imposing sanctions on the countries for importing oil from Iran,
etc. some of the major decision of president Trump is not only poisoning the relationship with
other economies, it also adversely affect the goalball economy including China and UK (Rielly,
2019). Boycott of some of the major trade groups and alliances may result in a low cooperation
level of countries or large economies with USA. Although the decision of USA not only affect
the growth rate and economy of their big trade partners, it will also impact the economy of other
small countries which depends on China and USA (Gross and Gordon, 2019).
Conclusion
In conclusion, the current economic policy of president Donald Trump not only affect the
economy of its trade partners rather it also affects the economy of USA as well. As China and
USA are two giant trade partners who involve in billion dollars trade, the hike of tariff and levies
rate may lead to the trade world war in the world, which adversely affect the economy of world.
The USA government should try to resolve the tense situation with China and other countries
and remove its hike on tariffs, thus the normal trade will be continued and it will be in favor of
all other small and developing countries. The fight of export and import should always lead to a
great loss for the whole world rather than profit for the two countries.

Global Business Environment 10
References
Eichengreen, B. (2019) Trade policy and the macroeconomy. IMF Economic Review, 67(1),
pp.4-23.
Gross, J. and Gordon, D.B. (2019) The Strengths and Weaknesses of Current US Policy to
Address Pain. American journal of public health, 109(1), pp.66-72.
Kazun, A.D. and Kazun, A.P. (2019) Neither a Friend. Not a Foe: Donald Trump in the Russian
Media. Polis. Political Studies, 1(1), pp.90-104.
Lilly, M., Díaz, H.P. and McDaniel, C. (2019) The Future of North America’s Economic
Relationship: From NAFTA to the New Canada-United States-Mexico Agreement and Beyond
[online]. Available from: https://www.cigionline.org/sites/default/files/documents/North
%20American%20Forum%20Special%20Report_1.pdf [Accessed: 30/05/2019].
Lukin, A.V. (2019) Discussion on the Development of China and Prospects for Its Foreign
Policy. Polis. Political Studies, 1(1), pp.71-89.
Odell, J.S. (2019) Trump and the Practice of International Trade Negotiation. Negotiation
Journal, 35(1), pp.147-150.
Rielly, J.E. (2019) Can President Donald Trump Destroy the Liberal International
Order?. Politique americaine, (1), pp.215-227.