Paul Krugman is a Nobel Prize - Free Essay Example

Sample details Pages: 5 Words: 1432 Downloads: 5 Date added: 2019/10/31 Category Economics Essay Level High school Tags: Macroeconomics Essay Did you like this example? Paul Krugman is a Nobel Prize winning economist whose name is among those reaching the peaks of macroeconomics and beyond through his work on international trade among other topics. He is a professor of economics at City University of New York and a columnist for The New York Times. The Prize he received was due to his work in explaining the patterns of international trade and the geographic distribution of economies scale and of consumer preferences for diverse goods and services. Don’t waste time! Our writers will create an original "Paul Krugman is a Nobel Prize" essay for you Create order Krugmans influence on international trade has helped garner a better understanding of free trade, urbanization and how worldwide trade is dominated by countries of similar conditions and products. The trade theory was based on, as of the mid-1970s, on the notion of comparative advantage. Up until then, David Ricardos theory from the 19th century and Heckscher-Ohlin theory from the 1920s held more weight due to the assumption of trade being conducted either in terms of technology or factor endowments. Comparative advantage is the ability to produce a good at a lower opportunity cost than a competitor can. Ricardos theory stated that countries can specialize on the production of goods it produces efficiently and buy the goods it produces less efficiently from other countries, even if this means buying goods from other countries it could efficiently produce itself. The Heckscher-Ohlin theory summed down to a capital abundant country exporting relatively capital-intensive goods and importing labor-intensive goods while assuming that both countries hold identical technology. The left side shows that the best place for coconuts is the trading with the best place for wool. Both of their items has to do a lot with the climate due to their geographic location. On the other hand, the right side shows that countries can be similar in abilities but they tend to pick a good that requires large scale production and focus on it so that different countries can come to them for that particular good. For example, Germany luxury cars trading with America for their aircrafts. The new trade began to emerge in the 1970s and was developed by Paul Krugman. This theory focuses on increasing returns to scale and network effects. Before this theory, the only reason trade was seen as a benefit was due to comparative advantage which means countries traded only what they were good at. These theories provided good explanations of the trade patterns in the first half of the 20th century. But as many researchers began to observe, comparative advantage seemed less relevant in the modern world. Today, most trade takes place between countries with similar technologies and similar factor proportions; quite similar goods are often both exported and imported by the same country. Paul Krugman developed that trade is due to increasing returns to scale, not the differences between the countries. He established a technology that indicates that it is cheaper to operate at large scale when extra units of a good are produced. When countries focus on the production of large quantities of specific products, it reduces production costs allowing for them to reap greater economies of scale. As a result, even if there are not differences in endowments, including culture and institutions, international trade is still beneficial. This is a form specialization which also helps to gain other network benefits while attaining a gain in economies of scale. The rate of scale is an increase in production which is related to the increase in factors of production. This is a relationship between input and output. There is a certain amount of input where the output remains constant so the best place for companies plugging in these inputs is to do it with the least amount of input generating the most output which in this case is at the number 3 for the scale of inputs. The new trade theory could also be said to show a role of government through their support in the growth of vital industries and in the promotion of new industries. There are many Asian economies who had protection and support from their governments which provides sustenance to this element of the new trade theory. For example, the support of the Japans government in the car industry. This evidence backs up the belief that a few years of support through tariff protection and domestic subsidies could be the encouragement needed in capital-intensive industries. There is also a downfall to government support because it could create a tendency for powerful businesses to rely on state support which could encourage inefficiency. The infant industry is another argument that justifies tariffs on imports to aid in the development of diverse industries. If a country could establish economies of scale through infrastructure then they can develop a comparative advantage and to do so they would place tariffs on countries where their industries have a dormant comparative advantage. While many developing countries have comparative advantage in minerals and agriculture, the long term production could be disadvantageous due to low-income elasticity of demand and unstable prices. The up and downs of supply and demand could be overcome if a developing country were to diversify the economy which could be done through a provision of a domestic market in lieu of a lack of capital markets through tariffs that will be reduced once the industries become more efficient. Urbanization, which has played a big part through specialization in the new trade theory, can be seen as a consequence of economic growth. It can also be seen as an extension of a process driven by technological and institutional changes in different countries. For example, specialization in the Silicon Valley surrounding the industry of IT expanded when Hewlett and Packard began the computer business. This is an outcome of network benefit which resulted in new firms popping up around older IT firms. The network effects can also be called the bandwagon effect where there is no intention to create value for others but it occurs anyway. The new trade theory also becomes an explanatory factor in the growth of globalization meaning that poor, underdeveloped countries that lag behind the economies of scale cannot hope to ever cultivate certain industries in their countries. There is not because of comparative advantage but due to the large economies of scale already owned by established firms. The increase in variety is a result of globalization. For example, there is heavy branding in the British and Italian labels so they hold a position in monopolistic competition even when they do not have a particular comparative advantage in producing clothes. The firms who have been a part of a certain industry for a long time have a certain advantage as opposed to new firms who cannot compete against these mature firms. The limited competition that global industries with great economies of scale face lead to a form of monopolistic competition. The element is very important in the new trade theory and it proposes that firms in their specialized industry are not just competing on simple price but also on branding and quality to out qualify the other and increase their demand. The number of firms in a competitive monopolistic industry and prices charged by them are affected by the size of market. The increase of the market size is credited to the opening up of a country to free trade. CC: AC= F/Q + c = n x F/S + c PP: P = c + 1/ (b x n). A type of imperfect rivalry, meaning monopolistic competition, is where many producers sell different products that are different from each another. There will be no single firm that controls the market and some firms will be larger than others. Aside from the automotive, pharmaceuticals and aerospace industries, another example is the fast food industry. On every corner of America, where there is a McDonalds, there will be a Burger King or Wendys or literally any other place that can serve food just as fast. The fast food restaurants will have something in their items that distinguishes them and that is a part of the new trade theory. The U.S. is big on imports more than exports which means there is a trade deficit. However, the investment of other countries is done in dollar so that makes Americas currency strong. The benefits of international trade outweigh the disadvantages that come with it. Paul Krugman influenced international trade through his analysis on trade patterns and location of economic activity. He revolutionized international trade by allowing other countries to take a step forward in strengthening their own economies through the commerce and trade. It has allowed underdeveloped countries to flourish and grow.

The Theory Of Free Will And Determinism - 1310 Words

Since the beginning of time man has questioned life in repose of if they are free, why and because. The question of whether there is a clash between causal necessity and human freedom was taken up by many philosophers put their own spin on the idea. Through this short text we will discuss the own theories of Hobbes, Laplace, Sartre, and Freud. The English philosopher Thomas Hobbes provides the text of Freedom to Do What We Want, where he states his belief in the idea of free will, which is that we will are own person to be free. This philosopher believes in compatibilist, which is the conviction that free will and determinism are harmonious ideas, and that it is possible to believe both without being plausibly unreliable. Compatibilists believe freedom can be present or absent in positions for reasons that have nothing to do with metaphysics. Hobbes has traditional ideas such as what exists is matter and motion i.e. Atoms, and occurs with strict and mechanical laws, and that’s about it. His views concerned with virtue, aristocracy, and ideas of good government. Essentially that was him in a nutshell till he stumbled upon Euclid proof and changed his views since. With this proof, Hobbes transformed the view of modern science from â€Å"black magic† to more acceptable to the public and pursued by public. His theory is that fear drives human action, that we as individuals are free to do something as long as they will themselves to. Pierre Simon de Laplace a French mathematicianShow MoreRelatedA Comparison Of Determinism And Free Will Theory1629 Words   |  7 Pages Magd Al Harbi A Comparison of Determinism Free Will Theory Kent State University Introduction One aspect of human existence that I think is particularly interesting is the extent of control of which we have over the decisions we make. In life, there are many decisions to be made, from simple ones that seem almost subconscious to complex decisions that can take days to ponder on. There are decisions that we make that directly affect others, indirectly affect others, and decisionsRead MoreFree Will Vs. Determinism879 Words   |  4 PagesFree Will vs. Determinism What determines and influences human behavior? Humans have been looking the answer for this question during several eras, thus they developed various theories attempting to explain human behavior. Determinism is the belief that one event is the consequence of a previous action, similar to a chain. According to some philosophers who support determinism, the will of an agent follows physical laws, and every action is explicable and predictable by physical conditions. By thisRead MoreDeterminism, Soft Determinism And Libertarianism982 Words   |  4 PagesDeterminism supporters claim that all consequences are inevitable since conditions are met and nothing else would occur by any chances. And determinism could influence and controlling everything in the universe with causal laws. According to determinism, we could make predictions about the occurrences of certain events or actions of human beings. There three types of determinism that I will discuss in the following, the Hard determi nism, Soft determinism and Libertarianism. Hard determinism claimsRead MoreDeterminism And Its Effects On Society957 Words   |  4 PagesDeterminism claims that all events are inevitable to have certain results at the end, since conditions are met and nothing else would occur. And it could apply to everything in the universe with causal laws. With the discovering laws, we could make predictions. Over the years, there are more than one determinism been developed over time. Hard determinism claims all the actions of human beings or consequences of events are determined by external conditions, with such conditions satisfied there willRead MoreDeterminism of Human Behavior Essay1176 Words   |  5 PagesDeterminism of Human Behavior Have you ever wondered why we do the things we do? Why might we get physical when we are angry? Why might we cry when we’re in pain? Why? What motivates us to behave the way we do in the numerous different situations we get ourselves into? Although there are many different answers that people could give us, there are two theories in particular that are highly debated with each other. One argument is that behaviour is determined throughRead MoreJohn Locke And John Chaffees Theory Of Philosophy1443 Words   |  6 Pagesbetween two extremes. John Locke developed his own theory of mind, which is often mentioned as the origin of modern conceptions of identity and self. Philosophers over the stretch of time have developed, and fine-tuned, their theories and conceptualized their own ideas on how and why all things in the universe work. From these different theories three examples of these ideas that stand out are determinism, compatibilism, and libertarianism. Determinism, defined by John Chaffee, is â€Å"The view that everyRead MoreThe True Nature Of Moral Responsibility936 Words   |  4 PagesThe theory that I find true to the true nature of moral responsibility and its relation to human freedom and determinism would be compatibilism. Compatibilism is the claim that we are both determined and that we have moral responsibility (Lawhead 120). It offers a solution to the free will problem. Free will goes along with determinism because of the moral responsibility and it is incompatibility between each other. We are still held responsible for our voluntary actions and our actions are stillRead MoreAnalysis Of The Philosophical Concepts Of Determinism And Free Will1711 Words   |  7 PagesAnalysis of Free Will The Stanford Encyclopedia of Philosophy defines â€Å"free will† as the discretion to choose between varieties of courses of action.The debate and arguments that surround free will have occupied philosophers for many centuries. Many scholars believe that the concept of free will is connected to the concept of responsibility, guilt, sin and other judgments that apply to the actions that are freely chosen by people. Other philosophers also link free will to the concept of persuasionRead MoreThe Master Of Their Destiny1446 Words   |  6 Pagespoint of view. It offers a point of view that states determinism is compatible with free will. Even though there are many arguments against this theory compatibilism offers people a alternative way of thinking, than that their life is already planned out for them out of their control. A compatibilist or also known as a soft determinist holds the belief that free will and determinism are evidently linked or are compatible with each other. Determinism states that every event is casually necessitated byRead MoreDeterminism Vs. Free Will893 Words   |  4 Pagesthe future is already determined is known in philosophy as determinism.   There are various definitions of determinism available; but in this essay, I shall use the Stanford Encyclopedia of Philosophy definition, which is ‘the metaphysical thesis that the facts of the past, in conjunction with the laws of nature, entail every truth about the future This idea presents a difficult problem for the concept of free will:  how can we make free choices if all our actions are determined by the facts of the

The Long Telegrams Impact on the Truman Doctrine Free Essays

pThe long Telegram and It’s impact on the Truman Doctrine George Kennan’s long telegram had many impacts on the American foreign policy. Its influence can be seen directly through the Truman Doctrine in 1947. The Long Telegram influenced Truman’s doctrine of containment, and it opened the eyes of many Washington officials as to how dangerous the Soviets and more specifically communism was. We will write a custom essay sample on The Long Telegrams Impact on the Truman Doctrine or any similar topic only for you Order Now George Kennan’s Long Telegram was a reply as to why the Soviets weren’t supporting the World Bank and the International Money Fund. At the time, the  American view of the  Soviet was friendly, yet cautious because the  Soviets had been  allied with the US in  WWII. The long telegram, which wasreleased to the public in 1947, basically created the foundation on which the Cold War stood from the US’ point of view. By claiming that the Soviets were completely against capitalism, would side with Marxists, and separated from reality, Kennan set up a standard system of beliefs  that the US would follow throughout the Cold War, and even gave ideas as to how to combat the Soviets if need be. The Long Telegram gave the US clear reason to consider war with Russia inevitable. It fostered further fear in America of the Soviets by talking  about how  Russia couldn’t be trusted and great lengths should be taken to ensure the absence of Soviets and their influence  in America. The Truman Doctrine was a contribution made to foreign policy by Harry Truman in 1947, after the Long Telegram had come into being. Truman declared, kind of like Wilson’s Moral Diplomacy, that it was the US’ duty to spread democracy and battle communism. Truman asked Congress to send aid to Greece and Turkey. After being ravaged by Germany in WWII,  Greece had been about to lose aid from Great Britain; Turkey had also depended greatly on the help of the US and Britain. The US would  have been  in danger of losing power over the Soviets and in Europe and Asia had Russia gained the two countries. This proves that what George Kennan wrote helped Truman realize that he needed to help other nations and create the foreign policy. Kennans telegram greatly impacted many other aspects of the Truman doctrine, for example the truman Doctrine all but promised that the United States would resist any Soviet expansion. This refects Kennan’s advise that the United States must carefully choose its points of resistance. Kennan’s notion of containment which was expressed in the Long Telegram was also illustrartes in the Truman Doctrine. George Kennans writings inspired America and thanks to the Long Telegram and the Truman Doctrine, America opened their eyes and did what was necessary to not allow themselves to be over ruled by the soviets. How to cite The Long Telegrams Impact on the Truman Doctrine, Essay examples

International Journal Of Rotating Machinery-Myassignmenthelp.Com

Question: Discuss About The International Journal Of Rotating Machinery? Answer: Introduction Entrepreneurship is the key for the business organizations to provide unique and innovative products or services to the target customers. Entrepreneurship is the business strategy of undertaking financial risks by the business organizations in the hope of profit (Drucker 2014). This is because the target customers might not prefer the innovation in the product or service brought in by the company. This report introduces the smart and technological LINX cycling helmet launched by COROS. The report highlights background, idea of the product or the service along with analyzing the market. The marketing plan of the target customers is also developed along with analyzing the critical risks of for the company and the product. Background to the idea COROS aim towards launching a new product for the Australian market that will offer various services to the cyclists. The product aimed to be launched by the company is LINX smart cycling helmet. The company is located in Perth Australia. The company aim towards launching the LINX smart cycling helmet based on the demand of the Australian market. Cycling is highly preferred by the Australian population because the population is highly concerned about individual health and the environmental aspect. Moreover, mountain cycling is becoming highly popular among the youth and the tourist of the country. Therefore, the company is excited to launch the LINX smart cycling helmet due to the different innovative features of the product (Kirzner 2015). The idea behind the launch of the LINX smart cycling helmet is to provide smart features to the cyclists along with ensuring safety for the cyclists. For example, mountain cycling provides opportunity of exploring the scenic beauty that riders wants to capture. Therefore, capturing and video recording of the scenic beauty while riding is a facility preferred by the cyclists. Alongside, measuring the heartbeat and calories burned are additional features that are preferred by the cyclists. The companies found the preferences by analyzing the Australian market and therefore, aim towards fulfilling the demand of the customers. The LINX smart cycling helmet launched by the company has various innovative features included in the helmet (Barringer 2012). Mission By launching the LINX smart cycling helmet, the company wants o increase the profit margin of the business. This will be a one of its kind-cycling helmet, as other helmets in the market only offers safety features to the cyclists. The company hopes to educate and enlighten the customers about the appropriate use of the smart helmet. Additionally, the company also aims towards giving fun and exciting features to the cyclist while cycling for the purpose of adventure, exercising and daily use. This will help in creating a unique image in the eye of the customers and they will look for the company and its products years after years for innovative service. The management of the company will find great satisfaction in regards to the way the population will live a healthy life as well as contributing to the community and the environment (Kelly, Singer and Herrington 2012). Product offering The LINX cycling smart helmet has wide range of unique and innovative services to offer along with ensuring safety. The main priority of the company is to ensure safety for the cyclists. Thus, the helmet is manufactured by polycarbonate shell with EPS impact foam with aerodynamics-optimized ventilation up to 15 vents. For making the product available for wide range of customers, the helmet will be available in both medium and large sizes. This will helps in reducing the level of sound for the cyclist so that their level of concentration increases thereby, mitigating the probability of accidents (Sheard and Corsini 2012). The helmet also provides the facilities of receiving and making calls along with listening to music and voice navigation. Due to such features offered by the helmet, bone conduction transducers type of speaker was used with 100-decibel speaker sensitivity (ElHansy et al. 20117). The LINX smart cycling helmet can be used for daily used as well as mountain cycling. Con sidering this features, the company has used wind resistant microphone. The battery capacity of the helmet will be approximately 10 hours per day and is manufactured by lithium. As a result, the battery used for the helmet exhausted less battery in spite of using calling and music facilities. The compatibility of the helmet will include 4.0, iOS and android devices. Additionally, the company has also considered that the weight of the helmet needs to be minimal. This will put less pressure for the cyclists thereby, mitigating the chances of neck and shoulder pain. Therefore, the weight of the helmet will be approximately 400 grams. In spite of having so many features included in the helmet, the product is certified by consumer product safety commission. For the customers, the company has kept one-year warranty period in case of emergencies such as breakage and disfunctioning of the features (Vdovin 2013). Market analysis Prior to the launch, the company needs to analyze the present market both in terms of industry and in terms of the competitors. This will allow the company to used appropriate marketing strategies in terms of promotion, distribution, innovativeness and pricing strategies. Analyzing the market will allow COROS to understand its position compared to the other companies in the market that offers similar products. Industry analysis P- Australia is governed by federal constitutional monarchy under the parliamentary democracy E- They have a strong economy with variety of natural resources. Their trade is based on the five principles of unilaterism, non discrimination, separation, transparency and indivisibility of trade policies. S- Aborigines were the first people of Australia. English is the most common language spoken in Australia. T- The access to internet by the Australian households has grown over the years. Expenditure on research and development has also reached the highest level. E- The continent has a large portion of unique plants and animals that cannot be found anywhere. The challenges include global warming, conservation of marine fauna, ocean dumping, and so on. L- The legal system is based on the rule of law, justice and independence of judiciary. They have eight state and territory systems and one federal system (Kremer and Symmons 2015). From the PESTLE analysis of the Australian market, it can be suggested that the country has a strong and stable political scenario that facilitates the growth of business organizations along with launching new products by the existing business organizations. The country has one of the growing economies and GDP in the world favoring business ventures. The legal system is also stable facilitating the growth of business in the country. Based on the above analysis, it can be suggested that the launch of LINX smart cycling helmet by COROS is appropriate. Competition In order to analyze the current market, the company will use Porters five forces. This will help in determining the attractiveness of the industry. According to (E Dobbs 2014), Porters five forces includes industry rivalry, threat to substitutes, and bargaining power of the buyers, suppliers, and barriers to enter the market. Threat of new entrants As mentioned by (Yunna and Yisheng 2014), the entry barriers of the market is the potential threat for the new products entering the market. This combines the economy and the operational scope such as cost structure, product differentiation, customer loyalty and the switching cost. The helmet manufacturing industry is a large industry globally that includes high capital costs that indicates high total and fixed costs. High amount of economies scales is noticed in the helmet manufacturing industry due to which the cost capital needs effective management. This will allow effective management of project resources for manufacturing helmets in terms of finance. The main aim of the company is to provide additional facilities to the customers along with ensuring safety while cycling. The factors that will help the product are the innovative features. The latter factor is dependent on the management of the company as the expansion of the helmet manufacturing industry is slow, as it is not fa vored by most of the population. Threat of substitute products As mentioned by Porter and Heppelmann (2014), except recession the purchasing of products are not hampered. Theoretically, the role of substitute products aims towards reducing the cost or charging higher price for the product. The organizations in the hotel manufacturing industry can compete with each other based on the innovativeness of the product. The competition between the manufacturers is also based on the unique facilities they can provide along with safety for the cyclists (Fischberg et al. 2013). Bargaining power of suppliers The suppliers of the helmet manufacturing industry might become powerful if the company emphasizes more on the demand of the customers rather than considering the the command for the business shares. The customers are vulnerable to product differentiation and costs of the product. Therefore, the customers will not prefer spending extra amount due to the market demand of the product. In addition to, if the features affect the image and quality of the LINX smart cycling helmet (Lee, Kim and Park 2012). Bargaining power of the buyers The helmet manufacturing industry might be affected by the bargaining power of the buyers, as they are concerned in purchasing the product. The group of buyer for the LINX smart cycling helmet includes the health fitness individuals, customers for using cycling daily and the tourists. The strategy is restricted for the aforementioned group as targeting other customers will incur loss for the organization (Marshall 2013). Threat of competitors The level of competition is based on the size and the number of competitors that are present in the potential market. The market competition is fierce when it comes to product differentiation and switching the cost that are rather low. The competition emphasizes costs that are more fixed (Rothaermel 2015). Primary target market In order to launch the unique and innovative product, COROS needs to target the potential customers. As commented by Liao et al. (2012), targeting customers allows the business organizations to emphasize on the needs and demands of the customers thereby, implementing operational, pricing and promotional strategies accordingly. The customers targeted by the organization are the children, young adults and the tourists. The Australian population suffers various complications in terms of health due to unhealthy lifestyle and diet. Therefore, they suffer from disorders such as obesity and other diseases. Therefore, targeting the children and the young adults are justified selection by the company. The additional features incorporated by the company within the helmets will attract the children and the young adults to exercise and use cycling for daily use. Features such as listening to music, making calls and video recording will influence the target customers for cycling. Additionally, the company has also targeted the tourists that prefer adventure and mountain cycling. The helmet will be extremely beneficial for the tourist as they will be able to record the areas they are exploring. Targeting the tourists is a business strategy implemented by COROS to invade the secondary markets as well. If the features and the benefits of the helmet will spread among the tourists, the company will be able to promote the helmet to other countries by word of mouth. Therefore, the company can prepare for international expansion in future. Marketing As commented by Ananda, Hernandez-Gracia and Lamberti (2014), marketing helps the company in communicating the products and its features to the target customers. Therefore, appropriate marketing will help COROS in communicating the unique and innovative features of the product to the target customers. This will help in making the product known among the target customers along with maximizing the sales. Sales maximization will help COROS in earning profit and expand the business. Product The product launched by COROS is LINX smart cycling helmet. The helmet differs from the normal cycling helmets as it offers wide range of services. The helmet weighs only 400 gms and is manufactured by polycarbonate shell with EPS impact foam. The helmet has the facility of video recording that will help the customers to capture the scenic beauty for leisure purpose. On the other hand, the helmet also offers facilities such as making calls, listening to music and audio GPS navigation. Therefore, the helmet can also influence the decision of the customers for using cycling at a regular basis for work purpose. This will be beneficial for the individual customers as well as the environment. Pricing Based on the target customers and the wide range of facilitates offered by the helmet the company has implemented penetration pricing strategy for the helmet. The starting cost of the helmet for the Australian population is minimum $200. The company has kept low price for the product initially, as this will help in convincing the customers for buying the helmet. The low price will not make the target customers think much before investing or purchasing the product. Comparatively low price of the helmet will help in attracting more customers when the product will be launched. Distribution COROS has decided to distribute the product from the stores. The product will be sold from various shops that are selling bicycles and the shops that are selling exercising equipment. Distributing the helmet from the store will allow the customers to evaluate the product physically. This will provide an opportunity for the customers to understand the features of the helmet thereby, influencing the purchasing decision. Apart from the distributing the product from the stores, the company will distribute the helmet online. Selling the product online will provide an opportunity for the company to reach out to customers even in the absence of the stores (Meng and Chatwin 2012). Therefore, this will provide opportunity for COROS to invade the secondary market as well. Promotion COROS has used various types of promotional strategies in to order to communicate the product to the target customers. As a promotional strategy, the company displayed displayed the features of the LINX smart cycling product by organizing a grand opening of the product. Keeping in the the innovative features that can influence the target customers for using the product, COROS has decided to associate the product with one of the youth icons or celebrities. This was a psychographic segmentation used by the company for attracting the customers. Alongside, as the promotional strategy, the company will be releasing the videos concerning the product by broadcasting it through social media (Bakshi and Gupta 2013). This allowed the company to promote the product by livestreaming videos related to the product and attracting the customers. Financial plan Startup expenses Legal $1,300 Brochures $3,580 Consultants $3,000 Insurance $2,400 Rent $4,400 Store setup $10,000 Other $2,500 Startup assets Cash required $67,123 Startup Inventory $16,027 Other current assets $0 Long term assets $59,170 Startup Funding Startup expenses to fund $27,680 Startup assets to fund $142,320 Total funding required Non-cash assets $75,197 Cash requirement $67,123 Additional cash raised $0 Cash balance on starting date $67,123 Total assets Current borrowing $10,000 Long term liabilities $20,000 Accounts payable $0 Other current liabilities $0 Total liabilities Planned investment $140,000 Critical risks However, there are some significant risks of launching the LINX smart cycling product. The company predicts that the product might fail in attracting the potential customers. This is because the company might fail to create a unique image in the eye of the target customers. The children and the young adults might not consider the beneficial aspect of the cycling both in terms of the environment and in terms of individual. Therefore, the target customers might not prefer to buy the LINX smart cycling helmet. On the other hand, the target customers might not prefer buying the smart helmet due to its various technological features. Such as the parents might hesitate in allowing the children to use the helmet while cycling due to features such as making calls, video recording and listening to music. The parents might think such technological features will restrict the target customers from concentrating while cycling. As a result, the chances of accidents while wearing the helmet is more compared to normal cycling helmets. Conclusion In this report, it can be concluded that the new, unique and innovative product COROS wants to launch for the Australian market is the LINX smart cycling helmet. The helmet is one its kind as it provides various other services along with ensuring safety for the cyclists. The helmet had facilities such as measuring the heartbeat, number of calories burnt along with making calls, video recording and voice GPS navigation. Keeping in mind the daily needs and health of the population, the company has selected the young adults and children as the target customers. A financial plan for the launch of the cycling helmet is done for estimating the overall budget. The market and competitors analysis highlights that Australia is a stable company and favors the launch of the new product. Additionally, a marketing plan is devised for the company to launch the product that includes product, price, promotion and place. References Ananda, A.S., Hernndez-Garca, . and Lamberti, L., 2014, June. RENL: A framework for social media marketing strategy. In 1st Annual EDIM PhD Conference, Milan, Italy (pp. 11-12). Bakshi, G. and Gupta, S.K., 2013. Online advertising and its impact on consumer buying behavior. International Journal of Research in Finance and Marketing, 3(1), pp.21-30. Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012). Drucker, P., 2014. Innovation and entrepreneurship. Routledge. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45. ElHansy, M.H., Boules, M.E., Farid, H., Chrystyn, H., El-Maraghi, S.K., Al-Kholy, M.B., El-Essawy, A.F.M., Abdelrahman, M.M., Said, A.S., Hussein, R.R. and Rabea, H., 2017. In vitro aerodynamic characteristics of aerosol delivered from different inhalation methods in mechanical ventilation. Pharmaceutical development and technology, 22(6), pp.844-849. Fischberg, D., Bull, J., Casarett, D., Hanson, L.C., Klein, S.M., Rotella, J., Smith, T., Storey, C.P., Teno, J.M., Widera, E. and Force, A.C.W.T., 2013. Five things physicians and patients should question in hospice and palliative medicine. Journal of pain and symptom management, 45(3), pp.595-605. Kelley, D.J., Singer, S. and Herrington, M., 2012. The global entrepreneurship monitor. 2011 Global Report, GEM 2011, 7. Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press. Kremer, P.D. and Symmons, M.A., 2015. Mass timber construction as an alternative to concrete and steel in the Australia building industry: a PESTEL evaluation of the potential. International Wood Products Journal, 6(3), pp.138-147. Lee, H., Kim, M.S. and Park, Y., 2012. An analytic network process approach to operationalization of five forces model. Applied Mathematical Modelling, 36(4), pp.1783-1795. Liao, S.H., Chu, P.H., Chen, Y.J. and Chang, C.C., 2012. Mining customer knowledge for exploring online group buying behavior. Expert Systems with Applications, 39(3), pp.3708-3716. Marshall, S., 2013. Evaluating the strategic and leadership challenges of MOOCs. Journal of Online Learning and Teaching, 9(2), p.216. Meng, S.K. and Chatwin, C., 2012. Measuring e-marketing mix elements for online business. International Journal of E-Entrepreneurship and Innovation (IJEEI), 3(3), pp.13-26. Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming competition. Harvard Business Review, 92(11), pp.64-88. Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education. Sheard, A.G. and Corsini, A., 2012. The mechanical impact of aerodynamic stall on tunnel ventilation fans. International Journal of Rotating Machinery, 2012. Vdovin, A., 2013. Investigation of Aerodynamic Resistance of Rotating Wheels on Passenger Cars. Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in China: Applying Porters five forces and scenario model. Renewable and Sustainable Energy Reviews, 40, pp.798-805.