Demand Pattern of Some Goods - Essay Example

Why? Fax provides an efficient way to send paper documents. Additionally, fax arrives immediately, and, more importantly, delivery is instantly confirmed. According to Davidson Consulting, more than 70 million fax machines are in operation today with the demand for fax capability growing rapidly--at a compounded annual growth rate of almost 19% worldwide.

Thus, we can see that with the growing global business trend, the use /demand for fax machines will grow year on year shortly.

d)Films and Camera

While the demand for traditional SLR cameras and films is slated to go down because of the rise in digital photography, the demand for high-end and sophisticated digital cameras is going to increase in the next few years. Since the internet and paperless photogate is on the rise, the demand for films might come down in the following years.

Video rented from retail outlets

A decade ago, when video and set-top boxes were not heard of, video cassettes and CDs were very much in demand. Today, however with the rising popularity of tools and applications like YouTube and video-on-demand, video rented from retail outlets might see negative growth in the coming years.

1. Pay-per-view television programs with the convergence of global businesses, people across the globe are hungry for news and facts affecting global business. The demand for specialized TV programs is increasing. Not everyone is interested in every sitcom. Tastes are getting more and more specialized and people more are ready to shouter more for something they feel is important to them. Thus, the demand for “pay-per-view” television programs will be going up in the coming years.

Section B

Q2) list and elaborate on the factors that will be affecting the supply for the following products in the next several years. do you think these factors will cause the supply to increase or decrease?
(draw the diagrams to show the impact)

g. Crude oil

 Factors affecting the supply of crude oil:

1. Global reserves of fossil fuels: As the reserves of crude oil get depleted with indiscriminate drilling and use of crude oil as a source of fuel, the supply of crude oil is going to come down.
2. International relations and trade with the global superpowers trying to assert their power over the oil-rich nations of the world, things might come to stand still and the supply of crude oil from the oil-rich countries might go down.
3. Increase in use of alternate sources of fuel: As alternate sources of energy, the solar, tidal, wind, hydel, organic, and chemical forms of energy gain popularity, the supply of crude oil might increase shortly.

With the world going digital and every small thing in the world getting more and more dependent on computers, the demand for computer memory chips is going to increase. These chips will replace books and notebooks in schools, paper in business and industrial transactions, games, and entertainment, and every other field of human interaction.

As the world goes global and distances cease to exist, the demand for travel and hotel rooms is going to increase. There will be more international trade, global deals, mergers, acquisitions, and exchange of talents. All this will lead to increased travel and demand for hotel rooms.

1. Fast food outlets in emerging markets

Aping the developed countries has been the hallmark of the developing countries. The emerging markets have surplus money to spend, high disposable income,s and a will to spend on new and international cuisine. So, international fast-food outlets will see a growth pattern in emerging markets. It has been observed that as disposable income grows, the spending pattern on food changes from staple food to fast food.

1. Credit card issued by financial institutions

The use of credit cards or plastic money has been growing in number and popularity for a decade or two. While banks and financial institutions have been falling over each other to offer the best deal to the consumer, the consumer has also grown smart and can read the fine print. Wise consumers are going in for debit cards, in which the consumer spends only the amount which is there in his account and avoids the credit and high-interest trap. Thus, the number of credit cards issued by financial institutions might be coming down in the coming years.

1. Laptop computers Laptop computers, PDAs, Blackberry’s: the world is going to see a phenomenal increase in the demand for these goods in the next few years. As human interactions over the world increase and people go in for paperless transactions, the demand for laptops will increase. These will replace diaries, files, folders, checkbooks, and other forms of paper used in transactions today.