Global Business Environment: Risks, Opportunities, and Impact Report

This report provides a detailed analysis of the global business environment, examining the impact of government regulations on social media firms, the effects of President Trump's economic policies on countries like the UK, EU, and China, and the opportunities presented by emerging economies such as India, China, and Brazil. The report delves into specific risks associated with advertising and consumer protection, defamation, privacy, and securities disclosure for social media companies. It then assesses how Trump's trade policies and protectionist measures affect international trade and investment, particularly in the context of Brexit and trade disputes. Finally, the report highlights the global expansion potential for businesses in rapidly growing economies, discussing the manufacturing sector and export opportunities in India, China's outward direction investment, and the growth sectors in Brazil. The conclusion summarizes the key findings, emphasizing the competitive nature of the global environment.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
A. Summarising rising risks to global social media firms from proposed or actual government
regulation and explaining impact on the firm.............................................................................1
B. Describing how President Trump’s approach to economic policy impacts on foreign
economies such as EU, UK, China.............................................................................................2
C. Discussing how emerging economies are presenting opportunities for global expansion for
businesses....................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment is complex phenomenon requiring supervision of
government for regulating economic policies. Present report deals with various economic aspects
such as summarising risks to international social media firms because of government regulations
will be addressed. Moreover, describing how President Trump's approach to economic policy
will impact on UK, EU and China. Furthermore, how emerging economies such as India, China
and Brazil are presenting opportunities for global expansion for companies will be addressed in
the report. Hence, overall assessment of macroeconomic policies of various nations will be
analysed quite effectually.
MAIN BODY
A. Summarising rising risks to global social media firms from proposed or actual government
regulation and explaining impact on the firm
Government regulations are to be followed by social media firms which affects them up
to a great extent. This is evident from the fact that global customers spent more than six hours on
an average on per month basis which provides clarity that people are much addicted to social
media and as a result, government regulations are of great concern so as to protect data of
customers on social media platforms such as Facebook, Twitter, Instagram etc. Facebook is
heavy media with 206.9 million visitors in December 2009 as some 67 % of global users visited
the platform in that month (Ellis. 2010). On the other hand, in 2018, privacy issues emerge as
main risk for Facebook as it had improperly obtained data of 50 million users.
The companies maximise their presence on social media also increase their interaction
with people and engage in conversations and break down barriers to communication. On the
other side, EU has harmonised laws in many areas and are different of various countries. The
laws and regulations imposed on social media firms are as follows-
Advertising and Consumer Protection
The risk rises and impact on global social media firms in relation to advertising on social
media with false advertising claims (Popescu, 2013). Moreover, attempting to inappropriately
influencing bloggers for writing favourable and biased reviews on their products. In the UK,
Advertising Standards Authority regulates entire range of advertising. While. Consumer
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Protection is given under Unfair Trading Regulations 2008 prohibiting on unfair business to
customer commercial practices.
Defamation
In the US. First Amendment provides broad protection for free speech. In the UK,
outcome of defamation case is then decided by balancing Right to free speech as against Right to
reputation. It affects global firms as reputation gets damaged if firms defamation case is filed.
Privacy/ Employee Use of social media
Privacy violations are another concern for laws and inappropriate disclosure with regards
to confidential information (Voegtlin, Patzer and Scherer, 2012). Moreover, inappropriate posts
on social platforms lead to claim for better environment of workplace of employees. Data is
protected under Data Protection Act 1998 of UK.
Securities Disclosure
The companies are allowed to disseminate information to investors and public by
electronic means under English Law. However, unauthorised disclosure or insider information
and making attempt for manipulating markets are of great risk for organisations as they are
scolded by securities regulators.
Hence, it can be summarised that government regulations be it proposed or actual
regulations affects international social media firms and they are required to follow rules else,
operations can be ceased which directly affects them.
B. Describing how President Trump’s approach to economic policy impacts on foreign
economies such as EU, UK, China
President Trump's approach to economic policy and impact on UK
Trade barriers and ditch free trade deals are implemented by Trump, UK will certainly
feel the same. The US is the UK's top partner in export and third biggest importer coming behind
Germany and China. Trump has come out to support Brexit and has treating UK fantastically.
UK is expected to lose momentum after Brexit and Trump's policies on economic trade would
further slow down the world economy (How UK politics, trade and security could be affected by
Trump. 2016). Risks arises for the UK when it comes to attract investment from foreign firms
which may arise from wave of populism. It is evident from the financial markets that Trump
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electoral upset, value of pound and other UK assets have failed for attracting investors as they
are not sure where markers will reach in uncertain times. Pound remains weak as against to other
major currencies leading to elevation in import costs and inflation as well.
Impact on EU
The President continues to determine its actual trade agenda and great powers such as EU
are negotiating trade deals leading to bypass US and writing new rules which are in vain. On
January 23, 2017, Trump has signed an order to withdraw negotiations on Trans-Pacific
Partnership and made promise to replace it with series related to bilateral agreements. In addition
to this, Japan and EU announced their trade deal. In later July, they agreed for maximising
Japanese auto exports to EU and European food exports to Japan. This clarifies that Trump's
economic policies are affecting EU as he uses protectionism for defending US industries directly
from competition from foreign (Ferraro and Briody, 2013). He has made goals for reducing trade
deficit of US and thus, protectionism is adopted by it. Hence, such economic policies being
adopted have direct impact on EU.
Impact on China
Donald Trump has imposed 25 % tariffs on $34 billion worth of Chinese imports coming
into effect and he has promised to come more in the future. China has accused President for
launching the largest trade war in economic history. The new tariffs imposed on goods include
robotics, cars, jet engines and machinery which are industrially significant technologies. He
accused China of stealing American intellectual property. In answer to this, China has increased
import levies on soybeans by US, medical equipment and crude oil (What will be the impact of
'the largest trade war in economic history' be?. 2018). This will affect both countries on
macroeconomic level as 10 – 20 % off will knock around nation's growth in the year. Loss US
economy was $19.4 trillion on previous year and Chinese economy was $12 trillion averaging
loss in between $30-60 billion. This will affect China as rising business uncertainty, reduced
confidence of private sectors and disruption occurring in supply chain which will enhance
economic downturn up to a major extent.
C. Discussing how emerging economies are presenting opportunities for global expansion for
businesses
India
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India is the fastest growing economy from past several years. Manufacturing sector is
important sector in any economy and so is crucial to Indian economy. In accordance to report of
United Nations Industrial Development Organisation (UNIDO), India is the largest producer of
textiles, chemical products, pharmaceuticals, machinery and will raise further in the future. This
has led to increase in exports of manufactured goods to Middle East, US, Western Europe. In
Middle East, UAE is major importer for Indian gems, jewellery, chemicals and engineering
products (Black, Morrison and Gregersen, 2013). This means that Indian economy is growing
rapidly and is presenting its industries towards global market opportunities and will rise further.
Thus, trend of economy is on accelerated mode and will become superpower in the future.
China
China is another emerging economy focusing on to encourage Outward Direction
Investment (ODI) by sticking to country's strategic objectives. The policy was being imposed for
enhancing acquisition of foreign expertise and technology in a better manner. The brand
recognition of Chinese products and diversifying commodities offerings to cater international
markets in the best manner possible. China's 'going global' initiative for promoting its business to
promote global remain quite successful in the 2017 (Chinese Companies Go Global: Recent
Progress. 2017). While, data on ODI shows some downturn reflecting on diverting investment
priorities from Beijing and imposing ODI controls at the end of 2016. Chinese firms bought
relatively safer assets in developed nations. Thus, it is effectively presenting opportunities for
global expansion for businesses.
Brazil
Brazil is one of the emerging economy and has several global opportunities being
prevailing in the country leading to economic growth. US was the largest source of Brazil's
imports followed by China, Argentina, Germany and South Korea in the year 2011. Higher
growth sectors of the nation are airlines, telecoms, oil and gas and mining (Zhang and Huang,
2012). IT sector is soaring ahead and has grown to $134 billion in 2014. In accordance to the
Growth Acceleration Program, Brazilian government spent $470 billion in developing its energy
generation and distribution system, railroads, ports, airports etc. Thus, it can be said that Brazil is
presenting itself adequately in front of global opportunities in the market in effective manner.
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CONCLUSION
Hereby it can be concluded that macroeconomic policies being induced by government of
nations are quite useful for regulating overall economies in the best manner possible. The global
social media firms are affected by government regulations up to a major extent and has impacted
them to global level. While, Trump's approach to economic policy on major economies are not
good as growth rate has been affected. On the other hand, emerging economies such as China,
India and Brazil are also enhancing their performance and presenting global opportunities in the
international market. Thus, global environment has become quite competitive.
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REFERENCES
Books and Journals
Black, J. S., Morrison, A. J. and Gregersen, H. B., 2013. Global explorers: The next generation
of leaders. Routledge.
Ferraro, G. P. and Briody, E. K., 2013. The cultural dimension of global business. Upper Saddle
River: Pearson.
Popescu, G. H., 2013. Macroeconomics, effective leadership, and the global business
environment. Contemporary Readings in Law and Social Justice. 5(2). p.170.
Voegtlin, C., Patzer, M. and Scherer, A. G., 2012. Responsible leadership in global business: A
new approach to leadership and its multi-level outcomes. Journal of Business
Ethics.105(1). pp.1-16.
Zhang, A. and Huang, G. Q., 2012. Impacts of business environment changes on global
manufacturing outsourcing in China. Supply Chain Management: An International
Journal.17(2). pp.138-151.
Online
Chinese Companies Go Global: Recent Progress. 2017 [Online] Available Through: <https://ins-
globalconsulting.com/chinese-companies-going-global/>
Ellis. 2010 The Growing Risks of Social Media [Online] Available Through:
<https://www.insurancejournal.com/news/national/2019/01/21/511042.htm>
How UK politics, trade and security could be affected by Trump. 2016 [Online] Available
Through: <https://www.theguardian.com/politics/2016/nov/10/how-uk-politics-trade-and-
security-could-be-affected-by-trump>
What will be the impact of 'the largest trade war in economic history' be?. 2018 [Online]
Available Through: <https://www.independent.co.uk/news/business/analysis-and-features/
trade-war-explained-tariffs-donald-trump-us-china-imports-exports-a8434626.html>
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