Global business Environment

Increasing risks for Social media firms operating globally like Instagram and Facebook who are facing from actual government regulations and their impacts on it

In this increasing regulated world, most of teh companies are facing several problems. There are several problems which social media firms that are on the top in the list such as Instagram, twitter and Fecbook facing several problems due to government regulations. All these companies feel requirement to train their employees for getting ready and become up to speed on new regulations as well as re educate them about emerging changes. Some challenges which all these social media forms are facing due to government regulations include:

Artifical intelligence: With continuous changes in regulations and expectations, companies are struggling in order to know the best way and thing which can help them out in satisfying their stakeholders and accomplish goals. AI and operational accuracy is one of the effective solution. It reduces requirement to recruit more staff and cute the cost. But is is all based on machines which is increasing unemployment situation (Astuti, Assunta and Freeman, 2018). As per the some regulations of the government of providing employment at minimum wage create several problems for these companies. If they do not recruit more staff and depend on these machines they they have to suffer several problems at the time when these machines stop working.

Money laundering: It can be said that with increasing technology, companies are feeling requirement to invest more in technological tools which may be give positive impacts or may be negative impacts on it. After having successful transition of 4 MLD into jurisdictional law as it wabs not long before the 5MLD. As it came into force then these social media companies are expected to become more prepared and in compliance in some areas such as: increasing use of digital iodentity technologies, registration of cryptocurrency exchanges etc. Due to this, frms are expected to be more careful and protect all informations.

Copyright infringements: It is one of the main policy and regulation area. With the help of these social media platforms, people share their cotent online may intentionally or in advertently infringe on others copyrights. Paradigms have shifted over the years in identification that copyright owners or those who have this right may have different preferences to inforec to take down (Kumar and Nanda, 2019).

So, it can be said that online safety laws and other regulations create some problems for these coail media firms to operate and perform in their own way. All laws, specially online safety laws, bind these firms and make it leaggly requirfed to them to protect their all users. If tehy do not follow all guidelines and protect users then they have to pay penalty. In this regardsm it is stated that Facebook belatedly banned white hatred from its platforms. So, it can be said taht there are several issues which these companies are facing and in this context, Mark Zukerburg penned an op-ed in the Washington post that all social media firms that are operating globally , they cannot as well as should not take responsibility for policies (Facebook and Twitter Hit by New Legal Regulations to Clean Up Their Acts, 2019).

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Ways in which developing countries are giving global expansion opportunities to businesses

An developing market economy can be defined as a nation's economy that is performing activities with the main aim to become more advanced by means to expanding business, having growth and industrialization. Emerging economies or markets are all about the new wave of opportunity. During the first wave of globalization, there is a massive wave of Western multinational investment in the developing world. There are several characteristics which can show that emerging markets help businesses in expanding and growing their business such as: currency swings, having high excitability and has willingness and skills for growth, brisk economic growth and lower than average per capita income (Rauch, Dallasega and Matt, 2016). There are several examples of firms which shows that they are expanding their businesses and presenting opportunities for others as well:

Starbucks who is a popular brand, has announced to open its first outlet in India by having Joint venture with Tata global beverages. Jaguar Land Rover also opened its first assembly plant in India in the year of 2011. In addition, it is also stated that total 7 economies have been growing at an average approximate rate of 3.5% over the last 50 years and total 11 countries have grown at this average approximate rate. Out of 11 countries, 7 countries all happen to be in Asia. China, Malaysia, Thailand, Indonesia, Hong-kong, Singapore, and South Korea are all 7 countries (Opportunities to Grow Sales in Emerging Markets, 2018).

Some reasons which make all these emerging markets and economies to grow at a rapid rate and also help businesses to expand their businesses are:

• Making and effective as well as productive use of workforce and finding the best way to use all available skilled workforces.
• Investing as well as saving money at high levels domestically.
• Adoption of the latest technology and having better management practices.
• Creating both private and government institutions in order to support competition.

All these skills and abilities of emerging markets make them able to create a massive consumer class. By this, millions of customers became ready to purchase Canadian premium products. In addition, in the context to importance of emerging markets and their characteristics, it can also be said that governments are also supporting these markets as they look for investors for new infrastructure in order to support their growing business class. Several regulations like free trade agreements helps them out in expanding business (Govindarajan and Ramamurti, 2016).

There are total 24 countries which are considered as an emerging market as per the Morgan Stanley emerging market index which mainly include: China, India, Brazil and South Africa which are among the most famous markets which present their own unique benefits for those companies who have desire to look into all emerging market opportunities as well as taking the leap (Advantages of Emerging Market Opportunities, 2019). So, it can be said that successful execution and planning for growth of emerging economies of developing countries expansion help and boost sales growth.

Some ways by which governments use monetary and fiscal policies to stimulate economic activity and growth

Fiscal and monetary policies are considered as an effective and powerful tools for government which they use to steer economy in the right direction. Fiscal policy means spending and taxation of the government which can influence the economy. There are several ways by which government use fiscal policy which help them out in promoting the economy. Ways include: expansionary and contractionary policy which helps them to either increase economic growth via taxes and spendings or slow economic growth to cutback inflation (Types and Objectives of Fiscal Policy, 2019). In the case when government does not have enough cash in order to fund its own spending then it will borrow money in the form of issuing government bonds. So, it can be said that manipulating spending and taxation are ways of using this tool to stimulate economy.

On the other hand, monetary policy refers a decision which is being made by government in regard to the money supply and interest rates (Tassey, 2017). It is a policy that is being adopted by the country who has monetary authority as well as power of controling either money supply or interest rate payable on short term borrowings. An effective use of this tool or policy by the government help in lowering interest rates, increasing aggregate demand and boosting growth. There is an example which shows the way of working and using by the government such as: Central bank of the U.S. Use by at the time of purchasing treasury notes from its member banks. After that at the time of replacement of these treasury notes with credits, The Fed provides them appropriate cash to lend. For lending out excess cash, bank lowers lending rates. They reduce credit card interest rates as well which boosts consumer spending. The fed needs banks which can keep up a certain amount of their deposits in reserve at their local federal reserve branch office (Wang, 2018). So, it can be said that both works as an effective tool and stimulating economic growth.

CONCLUSION

From the above study it has been concluded that emerging markets or economies played a vital role in expanding business and making an effective growth. They have abilities to invest in technologies and use their workforce effectively. It has also shown some challenges which social media firms are facing due to some governmental regulations. Lastly, it has discussed some ways by which government are using fiscal and monetary policies in order to stimulate economical growth.

Read more - Study of Unethical Practices on Business Environment

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