Quantitative Analysis Research Paper Example | Topics and Well Written Essays - 750 words - 1

Quantitative Analysis - Research Paper Example of taste and preferences, time of the year, and economic changes among other factors and an understanding of occurrence of such seasonal factors and their effects on equilibrium price is necessary and is recommended. Times series analysis allows for identification of effects of trend and seasonality, that can then be separated in forecasting optimal price and is therefore necessary for effective planning and goal setting. Forecasted seasonality and trend informs on expected changes in optimal prices that can be used to retain customers and even attract new customers for a competitive market share. The analysis, based on an organization’s data or that of the industry’s average and the following equation, can forecast daily or weekly prices for unit commodities that the restaurant could sell. Comparative analysis of cost and revenues is another recommended quantitative best practice for the business. Two approaches inform profit maximization and their understanding and use in the business will ensure optimal profitability. The difference between total cost and total revenue defines obtained profits and can be used to define profitability (Korrapati, 2014). Understanding the maximum level profit that an entity can achieve is more important for efficient resource utilization and this identifies the concept of marginal returns. Profit is maximized when marginal cost equals marginal revenues. Data analysis on difference between unit cost of a product and its unit price is therefore necessary for understanding the point of equality. This, however, relies on other practices such as optimal pricing that could use time series and cost accounting into determination of unit cost. The following mathematical equation expresses to optimization point. The mathematical approach can also inform decisions on optimal prices given cost and production capacity. A restaurant has such capacity limitation to space and number of seats in the restaurant and with a known optimal number

The Euro Debt Crisis and Consequences for the Developing Nations Essay

The Euro Debt Crisis and Consequences for the Developing Nations - Essay Example As an important trading block, there is no doubt that effects have already been spread elsewhere, with the developing nations having a share of the crisis. Accordingly, the global growth momentum is projected to slow down by more than one percent between the year 2010 and 2012 (IMF 8). Unemployment within the Euro zone is degenerating and surging upwards. In fact, the UK has registered a new level high in 17 years. Growth prospects are not any better in the United States with the Senate blocking Obama’s jobs bill. The euro has lost substantial ground against the dollar, whereas the Chinese Yuan has been gaining ground, a fact that has prompted the US to threaten China with trade sanctions, unless they devalue their currency. Do the less developed nations have anything to worry concerning the Euro crisis? Through what transmission mechanism could the developing nations experience the Euro zone debt crisis effects? While Germany and the UK are taking the lead in steering the Eur o zone towards a complete makeover with seemingly harsh austerity measures, especially to countries believed to be the architects of the crisis, developing countries are yet to feel the pinch of the crisis. As witnessed in the degenerative effects of the global financial crisis, the less developed nations were not hit hard mostly due to their limited financial integration with the world economy. Even though the effects delayed mostly in African countries, trade ties, capital flows, tourism, remittances from abroad, and foreign aid among other channels eventually led to a significant slowdown in these economies. Just as it was with the global financial crisis, the euro debt crisis is likely to affect the less developed nation through three main transmis ­sion channels: financial networks, fiscal consolidation within the European nations currently struggling to overcome the crisis, and through the exchange rate. While the austerity measures as well the rescue package released that h as seen a combined effort of the IMF to that of the EU are timely and may be effective, it is very unlikely that the measures will offset the impact of the crisis on European economies within a record time frame as may be envisioned by many economists (Mhango par 1). From the fiscal measures that are already being adopted in unison, the possibility that the Europe nations are headed for a slow growth phase is very likely. The immediate and direct impacts of such measure are set to become more pronounced in trade links (Kandiero and Ndikumana par 4). As shown in the diagram below, it is evident that many developing nations, mostly Africans, are dependent on the European markets. The effects of European debt crisis could also reach the developing nations through sovereign risks, arising from the declines in tax revenues. This would potentially increase the costs of borrowing due to changes in risk premiums. In particular, those countries with high fiscal deficits are relatively expose d to the risk of re-pricing of risk premiums. Already the effects are being felt in certain countries that utterly depend on exports as income generating component of their economies. The crisis is slowly cutting down demand for exports from Africa. The effect that this has will translate in difficulties of these countries in maintaining planned levels off public expenditures including infrastructural