International Trade Project Essay Example | Topics and Well Written Essays - 750 words

International Trade Project - Essay Example In this the world price is $1 which is way below the domestic price of $3. Hence, at $1 domestic supply falls to 1, however quantity demanded in the domestic market rises to 16. This takes place primarily because of the inverse relation of quantity demanded and the direct correlation of quantity supplied with price. Assuming that there are no transport and other costs, domestic supply and demand takes place according to the world price. Since world production is infinite, at $1 the quantity sold will be 16. c. Assuming that free trade takes place i.e. there is no tariff laid on the goods imported from outside the domestic country; the equilibrium price stays at $1. Quantity supplied domestically is 1 however quantity demanded domestically is 16, which means there is a gap of 15 units of production. This gap is bridged by importing 15 units of the product from the world market. Hence, the output produced by domestic producers is 1 and that by the foreign producers is 15. Since the domestic price is higher than the world price and the country is an importer of the good, this implies that the rest of the world has a comparative advantage in the production of the good. The country is thus a net importer of the good and thus domestic consumers of the good are better off since they have to pay a lower price. d. Despite all the benefits of free trade, barriers to free trade do exist. Tariffs are excise taxes imposed on imported goods. As a tariff of $1 per unit is imposed, on one hand it raises the world price to $2 and hence the quantity demanded falls to 11 from 16 and on the other hand, the quantity supplied rises from 1 to 4. The gap between domestic supply and demand falls from 15 to 7. Hence, under $1 tariff situation, a total of 11 units are sold at $2. Tariffs are imposed primarily for protecting the domestic market. As already seen, the major and immediate impact of tariff is the rise in the price level. Since price is inversely

BIG DATA Essay Example | Topics and Well Written Essays - 250 words

BIG DATA - Essay Example IBM on the other hand has invested 24 billion dollars in data analytics and through a company called Watson has employed about 15000 analytical practitioners to handle data collection and analysis. This data is used to analyze the market and improve their business. Another example on the use of data analytics in business is the BMW motor company whereby a survey conducted showed that people who were getting into cars were always having their windows broken in winter as a result of ice accumulation. In order to improve the customer confidence in their product, the company took it upon itself to wash the parked cars and give them back to the customers whenever they wanted to leave. In this way, the customer confidence in BMW improved. Facebook uses data analytics to conduct surveys and improve their business and the quality of service they offer to their customers. Recently, Facebook conducted a survey asking the question of which gender between males and females spends more time shari ng photographs on Facebook and the data collected showed that women spend more time sharing photographs than men. About 350 million photographs were shared daily on Facebook. For one to become a data scientist he must have data handling skills such as programming, databases creation and analysis, mathematical modeling, statistical analysis and above all he must be creative. If we analyze the trend on the use of big data by big companies, it is evident that companies are hesitant in investing in big data. About 55-60% of the investments in big data fail. This can be attributed to the fact that the companies start on technology first rather than understanding of the understanding of the fundamentals of the business. Today, there is a very high demand for data in business performance and market analysis and hence the need for companies to invest in big data. However, a major setback in handling big data is the shortage of data scientists to work in this field.