Research Methods and techniques

Submitted to: Maam Sadaf Alim

Submitted by:
Tarjuman E Ellahi (130)
Ali Mardan (150)
Danish Zulfiqar (021)
Sudais Ahmed (118)
Class: BBA 6A
 Impact of fake news on Economy

Abstract

This study will focus on the impact of fake news on the Economy and its components. Fake news
is one of the biggest reasons which affects the economy and the sectors related to it. To make
this study more productive, some articles will be used to support the argument that how Fake
news affect the overall economy and the other factors which are related to economy.

Fake news is a false or misrepresented fact or information which is either misleading or

manipulative which can affect the decisions or opinion of the person or group to which that
News is being casted.

The markets and corporates react to the news to take decisions that whether to they should invest
or not. The investors also look up to information related to the economy and market to take
investing decisions in the stock market and it is important that the information is viable and
authentic.

Direct Effect
One of the biggest examples of fake news impacting the economic disasters was the great
depression when the peaked market crashed because some economists tried to forecast the stock
market and tried to manipulate the masses which resulted in the people pulling out the stocks and
thus banks were out of money and market was inflated with money bills which caused the great
depression in USA. Another example of the fake news affecting the business and thus the
economy overall was when a statement referred to PEPSI co CEO which he never said was
released which costed the company an overall 5.6% drift decrease in the revenue and shares in
2016.
Indirect Effect

In Pakistan many fake news regarding the stock market and speculations by the unqualified self-
proclaimed economists’ journalists shared fake news which made an indirect negative impact on
the stock exchange market of Pakistan. These speculations and fake analysis manipulate the
people and thus market is affected by it which disturbs the overall economy in a big manner.
Journalists and News Channels are one of the main sources of information for public in Pakistan
and if they share any misleading fake information, people would believe it and thus it will make
an indirect impact on overall economy because of the decisions made by the public in view of
the fake news and information they were casted upon by those News channels and journalists.

Conclusion

Government should set strict rules and regulations about flow of information so
that fake news can be handled properly and strict actions can be taken against
people spreading fake news.