Global Business Environment - CW2 Report: Economic Policies and Risks

This report provides a comprehensive analysis of the global business environment, focusing on three key areas: the impact of President Trump's economic policies, the opportunities presented by emerging economies, and the regulatory risks faced by global social media firms. The first section examines how Trump's policies, including tax cuts and protectionist measures, have affected foreign economies like the UK and China, including the implications of trade wars and tariff increases. The second section explores how emerging economies, such as Hungary and Poland, offer opportunities for business expansion, particularly through foreign direct investment and the development of new markets. The final section discusses the challenges global social media firms, such as Facebook, Twitter, and Instagram, face from government regulations, particularly concerning data privacy and content moderation, and the impact of regulations like GDPR on advertising and user data management. The report concludes by summarizing the key findings and implications of these global business trends.

Global Business
Environment- CW2

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Impact on UK..............................................................................................................................4
Impact of China...........................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES..............................................................................................................................12

Describe and explain how President Trump’s approach to economic policy impacts upon
foreign economies such as the UK or EU or China.
INTRODUCTION
Donald Trump, president of USA and being president of one of the most powerful
country in the world Trump can impact various economies by his action. This has been proven
correct and President Trump’s economic policies made a significant impact on the foreign
economies such as UK and China. In context of economic policy Trump followed the approach
in which he reduced corporate and individual tax. Trade protectionism was also one of the parts
of his economic policy. The impact his policy made on China is considered as China-US Trade
war. UK also get affected as Donald Trump increased tariff on the products of UK.
MAIN BODY
Impact on UK
UK has been significantly affected by economic policy of Trump. President Trump
decided to rework on trade agreements with EU and this directly affected UK (Noland, 2018).
This is because that time UK was part of EU. President Trump increased 25% steel tariff and
10% aluminium tariff and this affected UK worth £389 million per year. This was definitely not
good for the economy of UK and along with economy and trade of UK also get affected by trade
war of China and USA. UK automotive industry was negatively affected by the trade war.
Decision taken by Trump after Brexit can have positive impact on the economy as earlier export
of food products from US to UK was limited due to high food safety standards of EU. Later US
can increase their export and this will also improve trade relationship of US and UK.
Impact of China
China and US are two largest economies of the world and Trump’s economic policies has
raised a conflict in these two economies of the world. US increased its tariffs and other trade
barriers on the China and goal behind doing this is that US forces China to change its unfair trade
practices. Imposing trade and improving national economy was the motive of Trump and his
policies. This will promote domestic manufacturing in US. This has not just affected China and
US but has also affected other economies of the world.

Policies of Donald Trump are significantly focused on reducing trade deficit of US and this is
why increasing tariffs is also a part of that objective (Ferguson and et.al., 2018). President Trump
mainly focused on improving domestic economy and this is why their economic approach has to
been to increase tariffs, cut down individual and corporate tax and also protect domestic trade.
This is why approach of Trump has been considered non-interventionist and American
nationalist.
This significantly affected China as China is one of the powerful economy and also powerful in
trade and manufacturing capacity.
CONCLUSION
On the basis of above discussion it can be concluded that Trump economic policies which
has been considered aggressive has the main objective of dealing with Trade deficit of US. This
leaded him to take decisions which are for his domestic economic improvement but this also
affected international economy as US had many trade partners. Enhancement in domestic
economy required affecting interest of those economies.

Global Business
Environment- CW2

Table of Content
INTRODUCTION
MAIN BODY
Role of FDI
Emerging Economies
CONCLUSION

Discuss and interpret how emerging economies are presenting opportunities for global
expansion for businesses using examples to illustrate your work
INTRODUCTION
Emerging economies are those economies which have some characteristics of developed
economies but are not developed economies. There are several reasons because of which
emerging economies are important to international business this is because such economies have
resources which can be utilized by international business and these economies gets benefit of that
in form of international investments. Emerging economies are those which consist of
possibilities to become developed economies. They also are beneficial as countries which has
possibilities to become developed they have resources and along with that they also have
opportunities for businesses to grow.
MAIN BODY
Role of FDI
FDI refers to foreign direct investments and such economies attract foreign direct
investments because such countries have improved infrastructure and also has emerging markets
with increasing demand (Lim, Oh and De Clercq, 2016). Increasing demand of the goods and
services also present opportunities for international businesses so that they invest in emerging
economies. The reason for increasing demand is that such economies are constantly increasing
their GDP and income per capita. This is the reason that disposable income gets increase and
they can spend higher amount and look for several options. Through FDI companies can invest
in such economies and fulfil needs and requirements and this is also beneficial for companies in
terms of their profit and productivity.
Emerging Economies
There are many countries which are under the category of emerging economies and
important reason behind this is that opportunities being offered by the country. Hungary and
Poland are two example of emerging economies and provide opportunity for international
businesses. In context of Hungary its GDP growth rate is 4.96% and provides ease of doing
business. Other than this Hungary also has abundance of natural resources which can be utilized

by businesses and they can also use this for their international business. Political environment of
Hungary is also favourable as government provides tax benefits to new enterprises. Ireland, US
and France are some of the economies which have benefited by investing in the Hungary. From
January to October 2019 Hungary received major international projects these were related to
electric vehicle from Japan and South Korea (Hungary: foreign investment, 2019). These
projects were received by Hungary because of its Investment Incentive Scheme.
In relation with Poland its economy is one of the fastest growing economies. Poland has high
skilled human resource and its domestic market is also strong this is why it provides opportunity
to international businesses (Gould, Liu and Yu, 2016). Netherlands, Germany are some of the
countries which has been benefited by investing in Poland.
CONCLUSION
On the basis of above discussion it can be concluded that emerging economies are very
attractive opportunities for international businesses. This is because developed country provides
stagnated benefit and businesses cannot grow in developed countries but in emerging economies
businesses grow and increase their benefit. Hungary and Poland are two example of such
countries discussed earlier and they has resources which can be utilized by businesses to increase
their profit and productivity.

Global Business
Environment- CW2

Table of Content
INTRODUCTION
MAIN BODY
Dealing with personal data after the GDPR Roll-Out
New Rules for Facebook Pixel
Leads Ads has become tricky proposition
CONCLUSION

Summarize the rising risks global social media firms such as Facebook, Twitter and
Instagram, face from proposed or actual government regulation and explain the possible
impact this could have on the firm
INTRODUCTION
Social media which started as a medium of interacting with others now has become a part
of everyday life of people. Users of social media are increasing day by day and this has also
contributed in several illegal and unethical practices of its users. Looking at its negative impact
on the society government has regulated its privacy and terms related to content on social media.
This is important so that such platforms can avoid negative and illegal content which might harm
people and also become reason for various anti-social activities. Data protection is also important
regarding social media regulations.
MAIN BODY
GDPR refers to General Data Protection Regulations is a regulation in EU law. This is
related to data protection and privacy of European Union and European Economic Area. This is
also concerned with transfer of data outside EU and EEA (Regulation, 2018). This is related to
privacy and protection of data and this is why it affects social media and Facebook. This is
because such platforms requires personal data of its users and this is why protection and
maintenance of the privacy of the data is legal and ethical duty of Social media sites. The impact
of GDPR on Facebook is as follows-
Dealing with personal data after the GDPR Roll-Out
Facebook advertisements has affected by the GDPR. This is because advertisements on
Facebook use personal data of users in order to target and retarget audiences and to measure
conversation. After GDPR for creating customised advertisements Facebook advertisers will
require to comply the rules and they cannot utilize personal data of user without their explicit
consent. Sharing of data between businesses is now against the rules of GDPR. This involves
proper processing that advertisers will have to review the information of Facebook users while
generating ads (Goddard, 2017). Users of Facebook will also be required to inform about the
information which is being used by the advertisers.

New Rules for Facebook Pixel
As a part of GDPR Facebook conversation tracking’s rules and regulations has also been
changed. Earlier advertisers were using Facebook pixel for tracking conversation, tracking
website traffic and using other methods for collecting user data for targeting users with Ads they
will require to comply to the rules of GDPR. Before monitoring activities of users advertisers
will require to take their consent every time.
Leads Ads has become tricky proposition
Earlier Facebook lead Ads were very effective business tool but this has been affected by
GDPR (Marelli and Testa, 2018). In such case Facebook and business advertising both are data
controller and this is why this is collective responsibility of both parties to ensure safety of user
data and also to follow regulations.
CONCLUSION
On the basis of above discussion it can be concluded that data protection and safety of
user data which is collected by social media sites is their responsibility. Regarding ensuring this
responsibility and changing it to legal regulation EU has developed GDPR and this is why
Facebook has to comply this and act accordingly.

REFERENCES
Books and Journals
Ferguson, T and et.al., 2018. The economic and social roots of populist rebellion: support for
Donald Trump in 2016. Institute for New Economic Thinking Working Paper Series.
(83).
Goddard, M., 2017. The EU General Data Protection Regulation (GDPR): European regulation
that has a global impact. International Journal of Market Research. 59(6). pp.703-705.
Gould, A.N., Liu, A.H. and Yu, Y., 2016. Opportunities and opportunism with high-status B2B
partners in emerging economies. Journal of Business & Industrial Marketing.
Lim, D.S., Oh, C.H. and De Clercq, D., 2016. Engagement in entrepreneurship in emerging
economies: Interactive effects of individual-level factors and institutional
conditions. International Business Review. 25(4). pp.933-945.
Marelli, L. and Testa, G., 2018. Scrutinizing the EU general data protection
regulation. Science. 360(6388), pp.496-498.
Noland, M., 2018. US trade policy in the Trump administration. Asian Economic Policy
Review. 13(2). pp.262-278.
Regulation, P., 2018. General data protection regulation. INTOUCH.
Online
Hungary: Foreign Investment. 2019. [Online]. Available Through<
https://santandertrade.com/en/portal/establish-overseas/hungary/foreign-investment >.