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Social Media Affecting The Market Economy / By: Giselle De Leon


 

Social media can lead to greater marketing opportunities, which can help to enhance human capital and increase productivity, boosting economic performance. Sara Hussin, a University of California computer science major states, “Due to the advancement in technology, it has led to a more reliable and connected network, where it has provided economic growth in companies and retailers and their rise in industry.” There is a connection between spending and economic variables such as earnings, GDP, and particularly media productivity. Spending on brands could increase revenue and the GDP, as well as productivity, and increase employment and consumer sales. Arturo Simental, an associate project manager, suggests, “Brands are able to connect with their customers and accommodate their needs on their app easily, due to that it leads to market shifts and continual consumer involvement.”


Increased U.S. exports and positive effects on global development may result from the connections the USTDA establishes on websites. It has connected American businesses with international export prospects, using social media to share market knowledge and trade leads with them. “Social networks have become a legitimized form of communication that strengthens connections between public sector entities and the constituents they serve” (Granicus, 2023).


The influence of social media on the market economy is another important aspect on how different platforms are making changes in their market share. “This has disrupted the traditional advertising model, and these platforms have become some of the world’s biggest companies by market capitalization as a result” (Desjardins, 2017).


Overall, the effect of social media is powerful. Social media raises awareness of trade and development prospects, motivating action and connecting the US industry to international commercial prospects. Many companies have created a large network where it now has a large online media spending. Social media has a large pull on the market economy due to the entrepreneurs that built it and the users that use their services to brand.


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