A Critique Of The Asset Pricing Theory Essay - 1825 Words

Despite this, however, some have since suggested that their model is pure economics, and is only valid in a theoretical world that doesn’t reflect some of the frictions that actual financial markets do. Richard Roll, and University and Auburn, University of Washington, and University of Chicago educated economist, began his career researching the effect of major events of stock prices. This experience likely helped him reach the two conclusions he makes in his 1977 â€Å"A Critique Of The Asset Pricing Theory’s Tests†, one of the earliest and most influential arguments against CAPM. In the paper, Roll makes two major claims: that CAPM is actually a redundant equation that just further proves the concept of mean-variance efficiency, and that it is impossible to conclusively prove CAPM. His first claim relates to mean-variance efficiency: the idea that mathematically one must be able to create a portfolio that offers the most return for a given amount of risk. Roll claims that all CAPM is doing is testing a portfolio’s mean variance efficiency, and not actually modeling out projected future returns. The second claim in the paper is that there is not enough data ab out market returns for CAPM to ever prove conclusive. Even if modern technologies could help alleviate some of the burden of testing market returns for publicly traded equities, there is still no way to account for the returns of less liquid markets, where there is less public information. This means it is impossible forShow MoreRelatedCapital Asset Pricing Model ( Capm )1552 Words   |  7 PagesIntroduction This essay is mainly focused on Capital Asset Pricing Model (CAPM) and how beta (measure of volatility) influences investment decisions. Nevertheless, how much we diversify our investments, it s impossible to get rid of all the risk. As investors, we deserve a rate of return that compensates us for taking on risk. The capital asset pricing model (CAPM) helps to compute the investment risk and expected returns. Throughout in depth analysis of CAPM model discussed in this essay, we willRead MoreCapm the Effects of Beta2754 Words   |  12 PagesBackground and Introduction This summary provides a brief overview of Capital Asset Pricing Model (CAPM) as an alternative method for estimating expected returns. This paper also discusses the positive and negative effects of CAPM along with the risks of Beta and why this model has its share of drawbacks and critics in the marketplace. The first section will cover the basics of CAPM including its flaws and rewards. Next, the risks of beta and the strengths and weaknesses are discussed in conjunctionRead MoreDo Marx s Views On Capitalism Provide Any Insights Into Economic Globalisation Today? Essay1187 Words   |  5 Pagesboundaries. Economic globalisation today, is a complex beast. The intricate system relies upon the interconnected expansion of cooperation between; Transnational Corporations (TNCs), Nation States, Non-Governmental Organizations (NGO) and more. The theory of globalism, that there is a growing collective awareness of the world as a shared social space, and the advancement of the global poli tical arena where; the politics of international social relations are used in the pursuit of power, national interestsRead MoreCapital Asset Pricing Model and Arbitrage Pricing Theory3608 Words   |  14 PagesCapital Asset Pricing Model and Arbitrage Pricing Theory: Capital Asset Pricing Model (CAPM) is an arithmetical theory that describes the relationship between risk and return in a balanced market. The Capital Assets Pricing Model was autonomously and simultaneously developed by William Sharpe, Jan Mossin, and John Litner. The researches of these founders were published in three different and highly respected journal articles between 1964 and 1966. Since its inception, the model has been used inRead MoreEssay on The Capital Asset Pricing Model (CAPM)1863 Words   |  8 PagesThe Capital Asset Pricing Model (CAPM) Introduction In almost every economics textbook (Ben and Robert, 2001), economists tend to argue: everything’s market price is determined by consumers’ demand and supply in the market, the intersection of which gives us the long-term concept of ‘market equilibrium’. Although it sounds straightforward, it is anything but easy in practice, especially when the assets (like common stock) you are measuring associated with risk and future uncertaintiesRead MoreThe Capital Asset Pricing Model3150 Words   |  13 Pages Introduction The Capital Asset Pricing Model (â€Å"CAPM†) was introduced by Sharpe (1964), Lintner (1965) and Mossin (1966), attempts to provide investors with an understanding in relation to the expected returns of their investment. However, this theory has been criticised by some empirical models resulted from the unrealistic assumptions. This paper will critically analyse the limitation of the CAPM and will discuss Arbitrage Pricing Theory (â€Å"APT†) and Fama-French (â€Å"FF†) Three-Factor Model (â€Å"TFM†)Read MoreProduct Life Cycle of Parle G767 Words   |  4 Pagesstudents with important Macro-Economic theories with a view to examine their relevant and efficacy with macro-economic policies. The working of the economy as a whole and a systematic understanding of the main macro-economic indicators, the factors involved in it and their interaction will also be analyzed in their course. Contents: Session No. | Content | 1. | Nature, Content amp; Special Problem of Macro-Economics | 2. | Macro-Economic Concepts amp; Theories. 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Thus, the value proposition of RA is to create value by providing customers with superior economy-centric passive investmentRead MoreThe Concept Of The Modern Portfolio Theory1887 Words   |  8 PagesIn 1952 the basic concept of the modern portfolio theory was written by Harry Markowitz, in which he explained that assets in an investment portfolio are not only to be selected on the basis of its merit but also by how it’s price changes relative to every other asset in the portfolio. Investment can be stated as a trade-off between expected return and risk, the riskier the investment the higher the return and vice versa. It allows us to make a decision to choose between the portfolio with eitherRead MoreThe Capital Asset Pricing Model1717 Words   |  7 Pages From the very time of its development, there have been many attempts to prove the validity of the Capital Asset Pricing Model. For instance, Black, Jensen and Scholes (1972) performed a test to check if securities are priced accordingly to their systematic risk. In order to test the theory that there was a positive linear relation between the expected return and beta, instead of the individual stock, they used monthly return data and portfolios. They obtained ten portfolios of monthly returns for

E Commerce Free Essays

Electronic commerce, commonly known as e-commerce or ecommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDILinventory management systems, and automated data collection systems. Modern electronic commerce typically uses he World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media, and telephones as well. We will write a custom essay sample on E Commerce or any similar topic only for you Order Now Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business. E-commerce can be divided into: E-tailing or â€Å"virtual storefronts† on websites with online catalogs, sometimes gathered into a â€Å"virtual mall† Buying or Selling on various websites and/or online marketplaces The gathering and use of demographic data through Web contacts and social media Electronic Data Interchange (ED’), the business-to-business exchange of data E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters) Business-to-business buying and selling The security of business transactions Types of e-commerce[edit] The major different types of e-commerce are: Business-to-Business (82B): 82B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80% of e-commerce is of this type, and most experts predict that 82B e- commerce will continue to grow faster than the B2C segment. The 82B market has two primary components: e-frastructure and e-markets. Business-to-consumer (B2C): Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods i. . , tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network. It is the second largest and the earliest form of e-commerce. Business-to-Government (826): Business-to-government e-commerce or B2G is generally defined as commerce between companies and the p ublic sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: first, the public sector assumes a pilot/ leading role in establishing e-commerce; and second, it is assumed that the public sector nas the greatest need tor making its procurement system more ettective. Web- based purchasing policies increase the transparency of the procurement process (and reduces the risk of irregularities). To date, however, the size of the B2G e- commerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped. Consumer-to-consumer (C2C): Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers. It perhaps has the greatest potential for developing new markets. Mobile Commerce (m-commerce): M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i. e. , handheld devices such as cellular telephones and personal digital assistants (PDAs). Japan is seen as a global leader in m-commerce. As content delivery over wireless devices becomes faster, more secure, and scalable, some believe that m-commerce will surpass wireline e-commerce as the method of choice for digital commerce transactions. This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users. Governmental regulation[edit] In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e- mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive. [24] Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers’ personal information. [25] As result, any corporate privacy policy related to e- ommerce activity may be subject to enforcement by the FTC. The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies. [26] Internationally there is the International Consumer Protection and Enforcement Network (ICPEN), which was formed in 1991 from an informal network of government customer fair trade organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in both goods and services, and to help ensure exchanges of nformation among the participants for mutual benefit and understanding. From this came Econsumer. gov, an ICPEN initiative since April 2001. It is a portal to report complaints about online and related transactions with foreign companies. There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the region through free and open trade and investment. APEC has an Electronic Commerce Stearing Group as well as working on common privacy regulations throughout the APEC region. In Australia, Trade is covered under Australian Treasury Guidelines tor electronic commerce, [27] and the Australian Competition and Consumer Commission[28] regulates and offers advice on how to deal with businesses online,[29] and offers specific advice on what happens if things go wrong. [30] Also Australian government e-commerce website[31] provides information on e-commerce in Australia. In the United Kingdom, The FSA (Financial Services Authority)[32] is the competent authority for most aspects of the Payment Services Directive (PSD). The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PSR affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc. The PSRs created a new class of regulated firms known as payment institutions (Pls), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the implementation and impact of the PSD by 1 November 2012. 33] Forms[edit] Contemporary electronic commerce involves everything from ordering â€Å"digital† ontent for immediate online consumption, to ordering conventional goods and services, to â€Å"meta† services to facilitate other types of electronic commerce. On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international busine ss. Data integrity and security are very hot and pressing issues for electronic commerce. Aside from traditional e-commerce, m-Commerce as well as the nascent t- Commerce[34] channels are often seen as the current 2013 poster children of electronic I-Commerce. Global trends[edit] In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita. [35] The Czech Republic is the European country where ecommerce delivers the biggest contribution to the enterprises’ total revenue. Almost a quarter (24%) of the countrys total turnover is generated via the online channel. 36] Among emerging economies, China’s e-commerce presence continues[when? ] to expand. With 384 million internet users, China’s online shopping sales rose to $36. 6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online. [37] China’s cross-border e-commerce is also growing rapidly. E-c ommerce transactions between China and other countries increased 32% to 2. 3 trillion yuan ($375. 8 billion) in 2012 and accounted for 9. % of China’s total international trade [38] Other BRIC countries are witnessing the accelerated growth of ecommerce as well. In Russia, the total ecommerce market is projected to total somewhere between 690 billion rubles ($23 billion) and 900 billion rubles ($30 billion) in 201 5, at 2010 values. This will equal 5% of total retail volume in Russia. Longer-term, the market size of Russian e-commerce could reach $50 billion by 2020. Brazil’s ecommerce is growing quickly with retail ecommerce sales expected to grow at a healthy double-digit pace through 2014. By 2016, eMarketer expects retail ecommerce sales in Brazil to reach $17. 3 billion. [39] India’s ecommerce growth, on the other hand, has been slower although the country’s potential remains solid considering its surging economy, the rapid growth of internet penetration, English language proficiency and a vast market of 1. billion consumers (although perhaps only 50 million access the internet throug n PCs and some estimate the most active group of e-commerce customers numbers only 2-3 million). E-commerce traffic grew about 50% from 2011 to 2012, from 26. 1 million to 37. million, according to a report released by Com Score. Still much of the estimated 14 billion dollars in 2012 ecommerce was generated from travel sites. ecommerce is also expanding across the Middle East. Having recorded the world’s fastest growth in internet usage between 2000 and 2009, the region is now[when? ] home to more than 0 million internet users. Retail, travel and gaming are the regi on’s top ecommerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportation[citation needed]. E-commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. [40][41] In 2012, ecommerce sales topped $1 trillion for the first time in history. [42] Impact on markets and retailers[edit] Economists have theorized that e-commerce ought to lead to intensified rice competition, as it increases consumers’ ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshopsand travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend. [43] How to cite E Commerce, Papers E Commerce Free Essays Although e-commerce application is not very popular in Sri Lanka, there are several organizations which successfully apply e-commerce in their business. One of the such organization is Kapruka (www. lanka. We will write a custom essay sample on E Commerce or any similar topic only for you Order Now info). The main objective of Kapruka is to provide online shopping facilities. In addition they have wide range of services for customers. They are gift delivery in Sri Lanka, photo print and delivery to customers, download Sinhala Mp3, rent a car in Sri Lanka, astrology services, and obtain Sinhala books / DVD / Videos. The business model operates by Kapruka is mainly B2C (Business to Customers) and B2B (Business to Business) transactions also happens. The B2C model involves transaction between business organization and consumers. The business organization sells its products or services to consumers over the internet. The following illustration briefly describes the process. (1)(2) Consumer Kapruka Internet Hosts product details Access product information Receive order process Place an order for the and dispatches product product 4) (3) We can see B2B model involves in Kapruka services when reloading mobile phones Through the internet. * ADVANTAGES OF E-COMMERCE 1) Faster buying/selling procedure, as well as easy to find products. 2) Buying and selling at all times 24/7. 3) More reach to customers, there is no theoretical geographic limitations. 4) Low operational costs and better quality of services. 5) No need of physical company set-ups. 6) Easy to start and manage a business. 7) Customers can easily select products from different providers without moving around physically. ) Customization-sellers can provide according to specific individuals requirements. 9) Eliminate Travel Time and Cost. In modern days when we are doing electronic based transactions via web there are many problems that we are faced. The first reason is people are not interested in this kind of transitions because they do not fully trust online payment systems. The reason is consumers think their bank information is not secured with internet. However if a customer’s agreed with this system still majority of people are not familiar with computers. So that they do mistakes when doing a transaction and they are reluctant to use internet. When doing internet transactions we must get register on certain organizations. In that case we have to give all the details for them. Examples are user name, passwords, credit card numbers, bank account number. This step is the most dangerous thing in transaction because the cyber criminals access our details and they can hack our bank accounts. So they can buy anything they want using our accounts. And there are some many more concerns when dealing with electronic based transactions via web. How to cite E Commerce, Papers E Commerce Free Essays E-commerce advantages and disadvantages E-commerce provides many new ways for businesses and consumers to communicate and conduct business. There are a number of advantages and disadvantages of conducting business in this manner. E-commerce advantages Some advantages that can be achieved from e-commerce include: †¢Being able to conduct business 24 x 7 x 365 . We will write a custom essay sample on E Commerce or any similar topic only for you Order Now E-commerce systems can operate all day every day. Your physical storefront does not need to be open in order for customers and suppliers to be doing business with you electronically. Access the global marketplace . The Internet spans the world, and it is possible to do business with any business or person who is connected to the Internet. Simple local businesses such as specialist record stores are able to market and sell their offerings internationally using e-commerce. This global opportunity is assisted by the fact that, unlike traditional communications methods, users are not charged according to the distance over which they are communicating. Speed. Electronic communications allow messages to traverse the world almost instantaneously. There is no need to wait weeks for a catalogue to arrive by post: that communications delay is not a part of the Internet / e-commerce world. †¢Marketspace. The market in which web-based businesses operate is the global market. It may not be evident to them, but many businesses are already facing international competition from web-enabled businesses. †¢Opportunity to reduce costs. The Internet makes it very easy to ‘shop around’ for products and services that may be cheaper or more effective than we might otherwise settle for. It is sometimes possible to, through some online research, identify original manufacturers for some goods – thereby bypassing wholesalers and achieving a cheaper price. †¢Computer platform-independent . ‘Many, if not most, computers have the ability to communicate via the Internet independent of operating systems and hardware. Customers are not limited by existing hardware systems’ (Gascoyne Ozcubukcu, 1997:87). †¢Efficient applications development environment – ‘In many respects, applications can be more efficiently developed and distributed because the can be built without regard to the customer’s or the business partner’s technology platform. Application updates do not have to be manually installed on computers. Rather, Internet-related technologies provide this capability inherently through automatic deployment of software updates’ (Gascoyne Ozcubukcu, 1997:87). Allowing customer self service and ‘customer outsourcing’. People can interact with businesses at any hour of the day that it is convenient to them, and because these interactions are initiated by customers, the customers also provide a lot of the data for the transaction that may otherwise need to be entered by business staff. This means that some of the work and costs are effectivel y shifted to customers; this is referred to as ‘customer outsourcing’. †¢Stepping beyond borders to a global view. Using aspects of e-commerce technology can mean your business can source and use products and services provided by other businesses in other countries. This seems obvious enough to say, but people do not always consider the implications of e-commerce. For example, in many ways it can be easier and cheaper to host and operate some e-commerce activities outside Australia. Further, because many e-commerce transactions involve credit cards, many businesses in Australia need to make arrangements for accepting online payments. However a number of major Australian banks have tended to be unhelpful laggards on this front, charging a lot of money and making it difficult to establish these arrangements – particularly for smaller businesses and/or businesses that don’t fit into a traditional-economy understanding of business. In some cases, therefore, it can be easier and cheaper to set up arrangements which bypass this aspect of the Australian banking system. Admittedly, this can create some grey areas for legal and taxation purposes, but these can be dealt with. And yes these circumstances do have implications for Australia’s national competitiveness and the competitiveness of our industries and businesses. As a further thought, many businesses find it easier to buy and sell in U. S. dollars: it is effectively the major currency of the Internet. In this context, global online customers can find the concept of peculiar and unfamiliar currencies disconcerting. Some businesses find they can achieve higher prices online and in US dollars than they would achieve selling locally or nationally. Given that banks often charge fees for converting currencies, this is another reason to investigate all of your (national and international) options for accepting and making online payments. In brief, it is useful to take a global view with regard the potential and organisation of your e-commerce activities, especially if you are targeting global customers. †¢A new marketing channel. The Internet provides an important new channel to sell to consumers. Peterson et al. 1999) suggest that, as a marketing channel, the Internet has the following characteristics: †¢the ability to inexpensively store vast amounts of information at different virtual locations †¢the availability of powerful and inexpensive means of searching, organising, and disseminating such information †¢interactivity and the ability to provide information on demand †¢the ability to provide perceptual experiences that are far superior to a printed catalogue, although not as rich as personal inspect ion †¢the capability to serve as a transaction medium the ability to serve as a physical distribution medium for certain goods (e. g. , software) †¢relatively low entry and establishment costs for sellers †¢no other existing marketing channel possesses all of these characteristics. Some of these advantages and their surrounding issues are discussed below in further detail. E-commerce disadvantages and constraints Some disadvantages and constraints of e-commerce include the following. †¢Time for delivery of physical products . It is possible to visit a local music store and walk out with a compact disc, or a bookstore and leave with a book. E-commerce is often used to buy goods that are not available locally from businesses all over the world, meaning that physical goods need to be delivered, which takes time and costs money. In some cases there are ways around this, for example, with electronic files of the music or books being accessed across the Internet, but then these are not physical goods. †¢Physical product, supplier delivery uncertainty . When you walk out of a shop with an item, it’s yours. You have it; you know what it is, where it is and how it looks. In some respects e-commerce purchases are made on trust. This is because, firstly, not having had physical access to the product, a purchase is made on an expectation of what that product is and its condition. Secondly, because supplying businesses can be conducted across the world, it can be uncertain whether or not they are legitimate businesses and are not just going to take your money. It’s pretty hard to knock on their door to complain or seek legal recourse! Thirdly, even if the item is sent, it is easy to start wondering whether or not it will ever arrive. †¢Perishable goods . Forget about ordering a single gelato ice cream from a shop in Rome! Though specialised or refrigerated transport can be used, goods bought and sold via the Internet tend to be durable and non-perishable: they need to survive the trip from the supplier to the purchasing business or consumer. This shifts the bias for perishable and/or non-durable goods back towards traditional supply chain arrangements, or towards relatively more local e-commerce-based purchases, sales and distribution. In contrast, durable goods can be traded from almost anyone to almost anyone else, sparking competition for lower prices. In some cases this leads to disintermediation in which intermediary people and businesses are bypassed by consumers and by other businesses that are seeking to purchase more directly from manufacturers. †¢Limited and selected sensory information. The Internet is an effective conduit for visual and auditory information: seeing pictures, hearing sounds and reading text. However it does not allow full scope for our senses: we can see pictures of the flowers, but not smell their fragrance; we can see pictures of a hammer, but not feel its weight or balance. Further, when we pick up and inspect something, we choose what we look at and how we look at it. This is not the case on the Internet. If we were looking at buying a car on the Internet, we would see the pictures the seller had chosen for us to see but not the things we might look for if we were able to see it in person. And, taking into account our other senses, we can’t test the car to hear the sound of the engine as it changes gears or sense the smell and feel of the leather seats. There are many ways in which the Internet does not convey the richness of experiences of the world. This lack of sensory information means that people are often much more comfortable buying via the Internet generic goods – things that they have seen or experienced before and about which there is little ambiguity, rather than unique or complex things. †¢Returning goods. Returning goods online can be an area of difficulty. The uncertainties surrounding the initial payment and delivery of goods can be exacerbated in this process. Will the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be left with nothing? How long will it take? Contrast this with the offline experience of returning goods to a shop. †¢Privacy, security, payment, identity, contract. Many issues arise – privacy of information, security of that information and payment details, whether or not payment details (eg credit card details) will be misused, identity theft, contract, and, whether we have one or not, what laws and legal jurisdiction apply. †¢Defined services the unexpected . E-commerce is an effective means for managing the transaction of known and established services, that is, things that are everyday. It is not suitable for dealing with the new or unexpected. For example, a transport company used to dealing with simple packages being asked if it can transport a hippopotamus, or a customer asking for a book order to be wrapped in blue and white polka dot paper with a bow. Such requests need human intervention to investigate and resolve. †¢Personal service . Although some human interaction can be facilitated via the web, e-commerce can not provide the richness of interaction provided by personal service. For most businesses, e-commerce methods provide the equivalent of an information-rich counter attendant rather than a salesperson. This also means that feedback about how people react to product and service offerings also tends to be more granular or perhaps lost using e-commerce approaches. If your only feedback is that people are (or are not) buying your products or services online, this is inadequate for evaluating how to change or improve your e-commerce strategies and/or product and service offerings. Successful business use of e-commerce typically involves strategies for gaining and applying customer feedback. This helps businesses to understand, anticipate and meet changing online customer needs and preferences, which is critical because of the comparatively rapid rate of ongoing Internet-based change. †¢Size and number of transactions. E-commerce is most often conducted using credit card facilities for payments, and as a result very small and very large transactions tend not to be conducted online. The size of transactions is also impacted by the economics of transporting physical goods. For example, any benefits or conveniences of buying a box of pens online from a US-based business tend to be eclipsed by the cost of having to pay for them to be delivered to you in Australia. The delivery costs also mean that buying individual items from a range of different overseas businesses is significantly more expensive than buying all of the goods from one overseas business because the goods can be packaged and shipped together. How to cite E Commerce, Essay examples E Commerce Free Essays Electronic commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well. We will write a custom essay sample on E Commerce or any similar topic only for you Order Now Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. The term â€Å"electronic commerce† was invented in 1983 by then-California State Assembly telecom-policy analysts Robert Jacobson and John Statton. The pair in 1981 had authored â€Å"Access Rights to the Electronic Marketplace,† a report to the Speaker’s Office of Research, to make the case for formally legislating aspects of the nascent industry. It needed a name. So Jacobson and Statton cobbled together the terms â€Å"electronic† and â€Å"commerce† used to define the legislative domain of the Utilities Commerce Committee, for which the two consultants worked. In 1983, at an historic hearing of the Utilities Commerce Committee chaired by then-Assemblywoman Gwen Moore (D-L. A. and held in the rural town of Volcano, California (home to Volcano Telephone, then the most-advanced independent phone company in California), the term â€Å"electronic commerce† was introduced for the first time. Testifying at the hearing were the California Public Utilities Commission, MCI Mail, CompuServe, Prodigy, Volcano Telephone Co. , and Pacific Telesis. (A small startup, Quantum Technologies, also asked to t estify, but was refused. It later became AOL. ) In 1984, California’s Electronic Commerce Act, the first to deal with consumer rights online, was passed and signed into law. Read also Recording General Fund Operating Budget and Operating Transactions E-commerce can be divided into: E-tailing or â€Å"virtual storefronts† on websites with online catalogs, sometimes gathered into a â€Å"virtual mall† The gathering and use of demographic data through Web contacts and social media Electronic Data Interchange (EDI), the business-to-business exchange of data E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters) Business-to-business buying and selling The security of business transactions Internationally there is the International Consumer Protection and Enforcement Network (ICPEN), which was formed in 1991 from an informal network of government customer fair trade organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in both goods and services, and to help ensure exchanges of information among the participants for mutual benefit and understanding. From this came econsumer, as an initiative of ICPEN since April 2001. www. econsumer. gov is a portal to report complaints about online and related transactions with foreign companies. There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the region through free and open trade and investment. APEC has an Electronic Commerce Stearing Group as well as working on common privacy regulations throughout the APEC region. In Australia, Trade is covered under Australian Treasury Guidelines for electronic commerce,[21] and the Australian Competition and Consumer Commission[22] regulates and offers advice on how to deal with businesses online,[23] and offers specific advice on what happens if things go wrong. 24] Also Australian government ecommerce website[25] provides information on ecommerce in Australia. In the United Kingdom, The FSA (Financial Services Authority)[26] is the competent authority for most aspects of the Payment Services Directive (PSD). The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PS R affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc. The PSRs created a new class of regulated firms known as payment institutions (PIs), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the implementation and impact of the PSD by 1 November 2012. [27] [edit]Forms Contemporary electronic commerce involves everything from ordering â€Å"digital† content for immediate online consumption, to ordering conventional goods and services, to â€Å"meta† services to facilitate other types of electronic commerce. On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce. Aside from traditional e-Commerce, m-Commerce as well as the nascent t-Commerce[28] channels are often seen as the current 2013 poster children of electronic I-Commerce. [edit]Global trends In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita, even higher than the USA. 29] Amongst emerging economies, China’s e-commerce presence continues to expand. With 384 million internet users, China’s online shopping sales rose to $36. 6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online. [30] eCommerce is also expandin g across the Middle East. Having recorded the world’s fastest growth in internet usage between 2000 and 2009, the region is now home to more than 60 million internet users. Retail, travel and gaming are the region’s top eCommerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportation. [31] E-Commerce has become an important tool for businesses worldwide not only to sell to customers but also to engage them. [32] [edit]Impact on markets and retailers Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers’ ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms have grown at the expense of smaller ones, as they are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend. 33] [edit]Distribution channels E-commerce has grown in importance as companies have adopted Pure-Click and Brick and Click channel systems. We can distinguish between pure-click and brick and click channel system adopted by companies. Pure-Click or Pureplay companies are those that have launched a website without any previous existence as a firm. Bricks-and-Clicks companies are those existing companies that have added an online site for e-commerce. [edit]S ee also How to cite E Commerce, Papers

Cryptography Essay Research Paper The dictionary define free essay sample

Cryptography Essay, Research Paper The dictionary define cryprotograpgy as being? The change of the signifier of a message by codifications and cyphers to hide its significance. Code words, usually from the codification book, base for one or more words from the field text ( the original message ) . With cyphers the letters of the field texture in separately substituted or transposed ( reordered ) harmonizing to a secret key. ? To me that definition fundamentally means at cryptanalysis is when a message is taken from its original signifier and set into a codification and that codification has a certain key that must be obyained / known to read the coded message, On January 19,1917 cryptanalysis played a great function in the public assistance of our state. Though Germany had antecedently promised President Wilson that it would discontinue assailing impersonal bearers, on February 1, 1917 Germany strayed from its policy of # 8220 ; tolerance # 8221 ; and began unrestricted pigboat warfare against all ships destined for Britain. We will write a custom essay sample on Cryptography Essay Research Paper The dictionary define or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Several American ships were sunk in February and March of 1917. At about this clip, newspapers published an intercepted a coded wire from German Foreign Minister Arthur Zimmerman to the authorities of Mexico, suggesting a German-Mexican confederation. On April 2, President Wilson asked Congress to declare war on Germany ; Congress complied four yearss subsequently. You see if our states leaders and secruity forces wouldn # 8217 ; T of known about cryptanalysis, where would we be now? ? Where would we be if no 1 had known how to decrypt that message? February 1, 1917 was a really of import twenty-four hours in the history of the national public assistance of the U nited States of America and I am mightily glad that there were people ready and actively seeking to check coded messages being sent from one enemy to another. To my cognition that is cryptographys major part to history ( at least in this century ) . But delay! Don? T go believing that cryptanalysis is a thing of the yesteryear because it surely is non! Looking on the web for information about the history of cryptanalysis I was bombarded with single companies personal web sites offering what is called # 8220 ; cryptanalytic services? . What that means is that you, or your company can engage these people to set all the information you want into a specially coded message that merely you and the service know. The ground this had become so popular is because of hackers and other people seeking to steal information. So state you are a scientist working for a house: you discover that cistron # 23 holds the remedy for anti aging. That information is Very, VERY, VERY extremely sought after and profitable and you don # 8217 ; t want any other houses or companies to happen out about it. so you put it into? your codification? ( developed by the cryptanalytic service ) and so you can direct it, station in and do it known merely to desired persons. Neat, huh? ! Past, nowadays and hereafter cryptanalysis has, is and ever will be of import. From our states security to our fiscal involvement cryptanalysis is breaking the lives of people everyplace. We are a really close, # 8216 ; restricted # 8217 ; society where engineering plays a immense function in our economic system and every twenty-four hours life. I am interested to see where cryptanalysis takes us in the new millenary.