Thursday, February 2, 2012

Facebook's IPO... and the Effects

An Economic Mindset writes about the effects that Facebook's emergence into the public market may have on consumers and investors in America.  But what are some of the effects that the IPO of Facebook may cause to the global economy?

Facebook has become a giant in the social networking world, but the corporation hasn't stopped there.  With games, news, and shopping available on the site, Facebook has become a place to locate around one's entire Internet experience.  Below, there is map that shows the dominant social network in each country.  Facebook, to say the least, has done well.


A map depicting social network dominance.  Facebook is anything blue or light blue. Need we say who is controlling the world's social network? (The Economist)

Now, let's try and imagine the growth potential that Facebook has worldwide. The biggest opportunity for growth is in China, which Founder Mark Zuckerberg is actively seeking a joint venture to gain entry into a country that could potentially double the amount of users on Facebook.  

What should Facebook do to ensure further market growth?  Is Facebook going public good for the global economy?

References:
  1. Amano, Evan. "Facebook's IPO and the Market". An Economic Mindset.  http://aneconomicmindset.blogspot.com/2012/02/facebooks-ipo-and-market.html 
  2. "Floating Facebook: The Value of Friendship". The Economist.  http://www.economist.com/node/21546020   




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