Global Business Enviroment

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.

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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.

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