Batesian Mimicry Definition and Examples

Most insects are quite vulnerable to predation. If you cant overpower your enemy, you can try to outsmart him, and thats just what Batesian mimics do to stay alive. What Is Batesian Mimicry? In Batesian mimicry in insects, an edible insect looks similar to an aposematic, inedible insect. The inedible insect is called the model, and the lookalike species is called the mimic. Hungry predators that have tried to eat the unpalatable model species learn to associate its colors and markings with an unpleasant dining experience. The predator will generally avoid wasting time and energy catching such a noxious meal again. Because the mimic resembles the model, it benefits from the predators bad experience. Successful Batesian mimicry communities depend on an imbalance of unpalatable versus edible species. The mimics must be limited in number, while the models tend to be common and abundant. For such a defensive strategy to work for the mimic, there must be a high probability that the predator in the equation will first attempt to eat the inedible model species. Having learned to avoid such foul-tasting meals, the predator will leave both the models and mimics alone. When tasty mimics become abundant, predators take longer to develop an association between the bright colors and the indigestible meal. Examples of Batesian Mimicry Numerous examples of Batesian mimicry in insects are known. Many insects mimic bees, including certain flies, beetles, and even moths. Few predators will take the chance of getting stung by a bee, and most will avoid eating anything that looks like a bee. Birds avoid the unpalatable monarch butterfly, which accumulates toxic steroids called cardenolides in its body from feeding on milkweed plants as a caterpillar. The viceroy butterfly bears similar colors as the monarch, so birds steer clear of viceroys, too. While monarchs and viceroys have long been used as a classic example of Batesian mimicry, some entomologists now argue this is really a case of MÃ ¼llerian mimicry. Henry Bates and His Theory on Mimicry Henry Bates first proposed this theory on mimicry in 1861, building on Charles Darwins views on evolution. Bates, a naturalist, collected butterflies in the Amazon and observed their behavior. As he organized his collection of tropical butterflies, he noticed a pattern. Bates observed that the slowest flying butterflies tended to be those with bright colors, but most predators seemed uninterested in such easy prey. When he grouped his butterfly collection according to their colors and markings, he found most specimens with similar coloration were common, related species. But Bates also identified some rare species from distant families that shared the same color patterns. Why would a rare butterfly share the physical traits of these more common, but unrelated, species? Bates hypothesized that the slow, colorful butterflies must be unpalatable to predators; otherwise, theyd all be eaten rather quickly! He suspected the rare butterflies gained protection from predators by resembling their more common but foul-tasting cousins. A predator that made the mistake of sampling a noxious butterfly would learn to avoid similar-looking individuals in the future. Using Darwins theory of natural selection as a reference, Bates recognized evolution was at play in these mimicry communities. The predator selectively chose prey which least resembled the unpalatable species. Over time, the more precise mimics survived, while the less exact mimics were consumed. The form of mimicry described by Henry Bates now bears his name –Â  Batesian mimicry. Another form of mimicry, in which entire communities of species resemble one another, is called Mullerian mimicry after German naturalist Fritz MÃ ¼ller.

Analysis Of The Bay Of Pigs Invasion - 2708 Words

Critical Reasoning/Thinking is defined as the mental process of analyzing or evaluating information. To reason is the capacity for rational thought, or to think logically (http://www.essentiallifeskills.net/). The Butterfly effect is the sensitive dependence on initial conditions in which a small change in one state of a deterministic nonlinear system can result in large differences in a later state (http://en.wikipedia.org/wiki/Butterfly_effect). This paper will attempt to analysis the Bay of Pigs invasion that occurred 17 April 1961, to use the Butterfly effect and to introduce Intelligence Platforms not utilized before and during the invasion, to suggest a alternate outcome to the invasion if these factors were applied properly or if other events never happened. The Bay of Pigs resulted in the failure to remove Fidel Castro from Power. If the CIA used Human Intelligence properly and if the U-2 Spy Plane program was not revealed to the World, the invasion may have been successful. If these 2 Intelligence platforms were utilized properly, the Bay of Pigs forces would have removed Fidel Castro from power. By removing him from power, Cuba would once again hold free Democratic elections and be a free and independent nation, not a communist nation or a strong Alley of Communist Soviet Union. Therefore U.S and Russia would not bring the world to the brink of war, nor would the U.S sever all trade and diplomatic relations with Cuba. On AprilShow MoreRelatedThe Bay Of Pigs And The Cuban Missile Crisis1516 Words   |  7 PagesThe Bay of Pigs invasion has come to be known as the perfect failure in American history. The invasion only lasted two days but the effects of the invasion lasted for decades. One of the most significant consequences of the Bay of Pigs was the thirteen day standoff between the Soviet Union and the United States over the installation of nuclear armed Soviet missiles on Cuba a year after the Bay of Pigs. The standoff, known as the Cuban Missile Crisis, is the closest the world has come to nuclearRead MoreJohn F. Kennedy s Decision Making Process1186 Words   |  5 Pagesto which John F. Kennedy’s decision-making process changed from the Bay of Pigs Invasion to the Cuban Missile crisis during his presidency. I chose the Bay of Pigs Invasion an d the Cuban Missile Crisis because the first is an event in John. F. Kennedy’s presidency before he gained experience from this job and the latter is an event from after he was acquainted with the presidential role. This span of time allows for the analysis of how a president changed throughout his presidency in terms of theirRead MoreLessons Learned Through History Are The Foundation For Not Repeating Previous Mistakes1447 Words   |  6 Pagesill-fated Bay of Pigs Invasion on 15 April 1961 and the second and third order effects that inevitably lead to the Cuban Missile Crisis a year later. The Bay of Pigs Operation placed Cuban Exiles known as the 2506 Brigade, backed and trained by the Central Intelligence Agency (CIA), against Cuban President Fidel Castro’s armed forces on the island nation of Cuba. The 2506 Brigade Cuban Exile Forces (CEF) conducted a night amphibious landing on the south side of the island in the Bay of Pigs area inRead MoreBay of Pigs and Realism1563 Words   |  7 PagesA Perfect Disaster: The Bay of Pigs Invasion and Realism D-Day, April 17, 1960; Brigade 2506 lands in the Bay of Pigs, a small beach in southern Cuba. Backed by former president Dwight Eisenhower, endorsed by current president John F. Kennedy, and masterminded by the Central Intelligence Agency, the plan to overthrow Fidel Castro, Prime Minister of Cuba, had been months in the making (Dunne 1). By the summer of 1959, as former Cuban leader Fulgencio Batista was overtaken by Castro, charges of communistRead MoreIntelligence Failure1042 Words   |  5 Pagesworst intelligence failure is a chain of errors that could convert a fiasco to a global crisis. The detailed analysis will be illustrated in the following cases. A: The Bay of Pigs In 1961, The Bay of Pigs project, CIA sponsored Cuban exiles to topple the administration of Cuban leader Fidel Castro. After finish the training in Guatemala, the exile army begin their invasion at the Bay of Pigs. As we already know, the outcome was unsuccessful because the exiles were defeated within three days andRead MoreJfk And Khrushchev s Impact On The World War II1293 Words   |  6 PagesCrisis. The most realistic incident that Kennedy did was the fake invasion on Ortsac, (Castro spelled backward), even though it was all fictitious Castro received the message loud and clear. This took some very well thought out plans. This is another reason why I think that Kennedy was a good president. Who else could have thought of something this good? All of the things that Kennedy has done prove my individual level of analysis. During this whole crisis, Kennedy stayed calm, he kept talking aboutRead MorePolitics and the History of Cuba773 Words   |  3 Pagesbrought John F. Kennedy to the office, and he listened to the CIAs invasion plan, which was based on the idea that as soon as the U.S. invaded the island, enough popular support would emerge that Castro and his party would be removed. At the last moment, though, Kennedy decided not to supply air assistance for the invaders and on April 17, 1961 1400 counterrevolutionaries led the CIA landed on the southern coast, the Bay of Pigs. Due to lack of air support, Castros army easily captured or killedRead MoreThe Cuban Missile Crisis1217 Words   |  5 PagesArchives, 2010). The threat was taken seriously. Kennedy did not think too deeply about how Castro might respond, even in the wake of the Bay of Pigs invasion. To act out of fear of Castros wrath would have meant pandering to the Soviets, because Nikita Khrushchev presented the scheme as a means of protecting Cuba from another United States-sponsored invasion. Khrushchev understood brilliantly the art of maskirovka. The CIA admits, Russian military texts indicate that maskirovka is treated asRead More Cuba in the Cold War Essay1821 Words   |  8 Pages17, 1961 one of the greatest foreign policy mistakes of the Cold War was made, the attempted invasion of the Bay of Pigs, Cuba. The failed invasion happened under the administration of John F. Kennedy and caused the deaths and imprisonment of over 1500 Cuban exiles fighting to over throw the rule of Fidel Castro. The aftermath caused much larger impacts towards United States foreign policy. The invasion made the United States look imperialistic to the rest of the world and allowed t he Soviet UnionRead MoreBattle Of The Bay Of Pigs1970 Words   |  8 PagesBattle of the Bay of Pigs The purpose of this paper is to provide battle analysis and highlight the events before, during, and after the Bay of Pigs battle, as well as elaborate on the significance it held on American-Soviet relationships. The battle was not successful due to several intelligence failures and biases during the planning phase. If proper intelligence preparation of the battlefield were utilized, the outcome would have been in favor of the United States (US), with the alternate outcome

Is The Uk Planning System Sustainable Environmental Sciences Essay Free Essays

The United Kingdom ( UK ) planning system operates on three grades, national, regional and local planning governments ( Office of the Deputy Prime Minister, 2005 ) . The Planning and Compulsory Purchase Act 2004 ( PCPA ) was brought into English jurisprudence to rush up the proceedings in the planning system and to do the planning determinations of major developments more â€Å" predictable † as is defined by the explanatory notes to the 2004 Act. The UK planning system operates within the remits of â€Å" sustainable development † , this focuses on three facets societal, economic and environmental. We will write a custom essay sample on Is The Uk Planning System Sustainable Environmental Sciences Essay or any similar topic only for you Order Now This three prong standards adopted for an already complicated planning system has lead to unfavorable judgments of lucidity, intent and for decelerating down proceedings. In order to objectively measure Bell and McGillvray ‘s statement, â€Å" Section39 of the planning and mandatory purchase act requires all program doing organic structures to exert their maps ‘with the aim of lending to the accomplishment of sustainable development † . Planing Policy Statement 6 ( PPS 6 ) , Planing for Town Centres, and Planing Policy Statement 9 ( PPS 9 ) , Biodiversity and Geological Conservation, are of critical relevancy to how and whom planning policy statute law is relevant to and as such are reviewed in respects to sustainable development. Sustainable development was the term coined and adopted by authoritiess, be aftering governments and non-government administrations for the development of planning policy and statute law, it â€Å" is the nucleus rule underpinning be aftering â€Å" ( PPS 6, 2003 ) . However there is still troubles in holding an internationally recognized definition, the most widely accepted definition is the publication of the United Nations ( UN ) World Commission on Environments Our Common hereafter ; â€Å" run intoing the demands of the present without compromising the ability of future coevalss to develop. † The subject is to protect the environment from debasement and to advance economic and societal verve. The committedness to the betterment of societal, economic and physical environments is quickly being endorsed by authoritiess around the universe, nevertheless trouble is common in fulfilling all three countries on new developments. In many instances determinations can be argued to hold been inattentive of environmental impacts in favor of economic benefits, alternately it can be argued that environmental sensitiveness has needlessly denied or inflated costs of new developments. The Newbury beltway has been constructed ( Insert snail instance survey ) Planing Policy Statement 6 PPS 6 was issued by the office of the Deputy premier minster in December 2003, it replaced Planing Policy Guidance note 6 and â€Å" has a cardinal function in easing and advancing sustainable and inclusive development † ( PPS 6, 2003 ) . PPS 6 is responsible for the development in town Centres and its primary focal point is on the regeneration and care of verve in town Centres and high streets. Friends of the Earth have critiscised PPS 6 saying it is responsible for â€Å" failure to supply clear counsel to local governments on the demand to keep big format shops † in their 2004 Consultation response Draft Planning Policy Statement Six: Planning for Town Centres. Conflicts in the planning procedure are determined by the consensus on what is more sustainable, but what if there is dissension on what is more sustainable. Subsection 2.6 of PPS 6 provinces â€Å" Larger shops may present benefits for consumers and local planning governments should do proviso for them in th is context † promoting border of town Centre vicinities for such developments. Where as it has besides been argued that larger shops can in fact be damaging to the diverseness and verve of a community, due to larger shops exporting all economic benefits out of their unmoved locations ( Friends of the Earth 2004 ) . This would connote a contradiction between PPS 6 and portion 1 of the 2004 PCPA. Another drawback to PPS 6 is its focal point on economic betterment through sustainable planning. Environmental debasement can non comprehensively be measured in fiscal graduated tables, and as such should non trust on pecuniary compensation as an effectual replacement in a sustainable policy. Planing Policy Statement 9 PPS 9 is responsible for the protection of biodiversity and geological preservation, nevertheless it is capable to controversy as to its precedence in planning policy. Made up of merely 14 paragraphs PPS 9 is the shortest planning policy statement, it has been critisizced as insufficient and equivocal in its capacity to supply clear way for be aftering organic structures ( Wildlife A ; Countryside Link 2004 ) . The authoritiess aims under PPS 9 are i ) to advance sustainable development two ) to conserve, enhance and reconstruct the diverseness of England ‘s wildlife and geology three ) to lend to rural reclamation and urban Renaissance ( PPS 9 2005 Page 2 ) . The committedness to the preservation of biodiversity is stated as one of the three chief aims of PPS 9, yet the the statement focuses on steps of conserving biodiversity in footings of protection of from debasement or injury. Wildlife A ; countryside nexus responded to PPS 9 in 2004 saying that it † contains smal l to promote positive planning for biodiversity Restoration and enhancement e.g. habitat creative activity chances † . PPS 9 fails to recognize and show the signifigance of the rate and impact of biodiversity loss at a planetary graduated table and the critical function of be aftering governments and the structuring of regional spacial schemes in footings of these contexts ( Friends of the Earth, 2004 Page 2 ) . A terrible nothingness of consistent information on clime alteration and its impact on biodiversity, one refrence to climate alteration can be found ; â€Å" Over clip the distribution of home grounds and species, and structural procedures and characteristics, will be affected by clime alteration and such alteration will necessitate to be taken into history. † ( Planing Policy Statement 9, 2005. Page 4 ) If biodiversity is to be conserved so a comprehensive model should be provided by authorities on the impacts and suggest agencies for local planning governments to cover with the impacts of clime alteration Wildlife A ; Countryside Link 2004 ) . Pargraph 10 of PPS 9 refers to the importance of biodiversity in ancient forests and emphasises that â€Å" one time lost it can non be recreated † , as such can non be capable to extenuation steps such as translocation as in the instance of the Desmoulin Whorl snail,1. Advancement for developments that would function to increase the loss of biodiversity is made possible by the get out clause â€Å" unless the demand for, and benefits of, the development in that location outweigh the loss of the forest home ground † ( PPS 9, 2005. Pg 6 ) . This caveate can be seen to promote the development of Sites of Particular Scientific Interest ( SSSI ) , as it undermines the tone of the planning policy statement and the planning already r equires the material considerations during the planning application phase ( Woodland Trust, 2004 ) . The Woodland Trust and Ancient Tree Forum requested the remotion of the aforesaid caveate in their 2004 response to PPS 9 proposing it would direct a clearer message about the protection of ancient forest. Decision The mandatory purchase act of 2004 serves to rush up be aftering proceedings and increase determination predictability, subdivision 39 of the act implores be aftering organic structures to keep development in a sustainable form. The effectivity of the mandatory purchase act of 2004 is straight affected by our definition of sustainable development and the precedences of economic, societal and environmental public assistance. The apprehension of sustainable development becomes diluted when applied to the multi-functional environment of suburban town Centres ( Griffiths S. 2008 ) .. Whilst still combative, the in agreement definition of sustainable development provided by UN universe committee on environments is clear in its aim, the more of import issue of what are considered to be acceptable sustainable patterns under planning policy statement should be reviewed with considerations to the responses of be aftering governments and non-governmental administrations. Climate alteration has caught tonss of attending in the political sphere with the most recent acme held in Copenhagen in December 2009, it is surprising so that there is merely one mention to climate alteration in PPS 9 and slightly conspicuous that it is the shortest of all the planning policy statements looking to be a briefly considered topic non built-in to the overall Agenda. The complexness of quantifying the resources provided to society by biodiversity in figures of currency make it a hard rival in for precedence in the political sphere of parliament. However the new system can be seen as a dramatic betterment in turn toing the antecedently vacant model on biodiversity preservation. How to cite Is The Uk Planning System Sustainable Environmental Sciences Essay, Essay examples

Energy Consumption - Carbon Emissions and Economic Growth In Saudi Arab

Question: Discuss the scenario of oil and gas industries in Saudi Arabia. Answer: Introduction The main aim of the essay is to discuss the scenario of oil and gas industries in Saudi Arabia. The author in this essay discusses the prices of the oil and its impact on the economy as well as oil market. The prices of oil were continually increasing due to various reasons such as high demand, low supply, black-marketing by the OPEC countries and scarcity of natural resources. In 2014, the prices of oil collapsed. The main reason was the non cooperation of Saudi Arabia with other OPEC countries. The essay illustrates and discusses the reasons for the fall in the prices of oil and its both long term and short term impact on economy and oil market. The author also discusses the strategies adopted by Saudi Arabia. The survey shows that Saudi Arabia is not being able to influence the market due to small market share (Singleton 2013). The paper discusses the factors and actors of collapse of oil prices and its consequences on the economy. There are various reasons for the fall in the sudden prices of oil. The entire market structure changed due to changes in the prices of oil. The research shows that Saudi Arabia will not be able to win the oil price war is due to the market that it has. The impact of the collapse in oil prices is directly on the jobs and capital expenditure. The paper discusses the investments in new exploration and production projects. The price of oil barrels has reduced to half in less than a year (Arouri and Rault 2012). The countries and the industries that were benefiting from the high price of oil are now facing loss. The companies that were making profit in past years are now cutting the investments in exploration and production of crude oil. Important factors affecting oil price collapse There were mainly four factors that contributed towards the collapse of oil prices. The main reason for collapse of oil prices was changes in the structure and planning of Saudi Arabia in the supply of oil. The reasons for fall in oil prices are explained as follows: Oversupply of oil If the supply of a product is higher than the demand, the price of the product falls in market as there is very less people to purchase the commodity. The suppliers have to reduce the price in order to sell its produce (Baffes et al. 2015). Hence, the price falls. This can be shown in a demand and supply framework as follows: Figure: Market equilibrium for crude oil (Source: Created by author) The above diagram shows that the equilibrium supply is S0. The equilibrium is E0 and the equilibrium price and quantity is P0 and Q0. As the supply of the product increases, the supply curve shifts to its right to S1. Since the demand for the product is same, the price of the product falls to P1 and the quantity increases to Q1. Hence, the above diagram shows how an increase in supply can lead to a fall in price. The total production of crude oil is expected to rise to over 9.35 million barrels per day that is higher than the forecasted production. The piling of stocks of crude oil or oil inventories is increasing day by day. The survey showed that the U.S. commercial crude oils inventories rose by 4.5 million barrels from the previous year. This was the major factor in the decline of prices of crude oil (Basher et al. 2012). Ineffectiveness of OPEC Countries Organization of petroleum exporting countries (OPEC) is a cartel of oil producers that greatly affects the activities of crude oils and its prices. The unwillingness of OPEC countries to cut the production of crude oils was another reason for the fall in the prices o crude oil. The prices of crude oil fell by fifty percent since the decision of organization to cut down the production of crude oils. Venezuela and Algeria the two participating countries of OPEC decided to cut the production to boost the prices of crude oil. Saudi Arabia and United Arab Emirates, the other two participating countries of OPEC refused to cut down the production (Bowler 2015). This led to the increase in the production of crude oil that put a downward pressure on the prices of crude oils for the long term. Strong U.S. Dollar The other reason for fall in prices of oil is strong value of American dollar. The value of American dollar is higher than Euro that leads to appreciation of the exchange rate and fall in the prices of crude oil. Strong value of dollars indicate fall in the value of commodities. The prices of global commodity are expressed in terms of exchange rate and a strong value of dollar has a great impact on the prices of crude oil (Dev 2016). This can be shown in a diagram below: Figure: Appreciation of national currency causes fall in net exports and leads to decline in the price level (Source: Created by author) Decline in demand Decline in demand for crude oils is another reason for fall in the prices of crude oil. The main reason for decline in demand is weakening of the economies of Europe and other developing countries. The vehicles that are produced recently are fuel efficient that requires less fuel in its operation. This is also one of the reasons for the fall in the prices. The supply of oil is continually increasing and the demand is falling that is leading the prices of the oil to fall. China is the worlds largest importer of oil. Devaluation of the currency of china is one of the major factors for the decline in demand of crude oils (Arezki and Blanchard 2014). This can be expressed in a diagram as follows: Figure: Demand supply framework to describe fall in oil prices (Source: created by author) As the demand falls the demand curve shifts to its left. The supply remains the same and hence the price falls from P1 to P2. Hence low demand leads to fall in prices. Iran nuclear deal- Iran nuclear deal is an agreement between Iran and other nuclear countries. The primary motive of the agreement is to reduce the facilities of nuclear activities. The deal removes the restrictions of the western economies to export crude oil that increases the supply of crude oil and decreases the price (Baumeister and Peersman 2013). The prices of crude oil are expected to fall further because of the overproduction of oils by OPEC countries, slowdown of the economy of china and European Union and rise in US shale oil production. Then major factor behind the steep decline in the prices of crude oil was the collusion between Saudi Arabia and United States whose main aim was to reduce the revenues of Iran and Russia (Kilian 2014). Figure: Falling crude oil prices (Source: Samargandi et al. 2014). Short and midterm impact on the oil market Changes in prices of oil is having both long and short term impact on the economy and market for oil. Cut in the oil prices is only beneficial for short term. In long term the economy will face a severe oil crisis due to continuous fall in prices of crude oil. The fall in prices of crude oil is not likely to fall for a long period of time as fall in prices affects the major players of the economy. The main players that is affected due to fall in prices of oil are global investments, oil producing industries and oil producing countries (Griffin and Teece 2016). The global investments and projects of energy sector dropped down by hundred billion dollars due to fall in the prices of oil. Fall in the investments is one of the major impacts of fall in crude oil prices. The second major impact was on the oil industries that are famous globally such as Royal Dutch Shell, Statoil and Chevron. The profits of the major industries declined and also its capacity to investment in new projects. This further led to the decline in the growth of the economy. The loss of all the major companies accounts to 1.3 trillion dollars that combines all the market capitalization of the companies (Nakov and Nuo 2013). The revenues of the oil suppliers are decreasing due to which the unemployment is also increasing. The main impact of fall in prices of oil is on Russia as it is the worlds largest oil producing country. Revenue from exporting energy is main source of capital inflow in the Russia. Decreasing oil prices has reduced the revenues of the export sector of the country. Therefore, it has affected the GDP of the country. It not only affects the economy of Russia but other countries as well such as Saudi Arabia and Venezuela as they are the major importers and exporters of oil. The fall in the prices of oil does not only have a negative impact but also has a positive impact. The demand for the complement goods such as cars rises in the market (Rautava 2013). Figure: Investments and exploration by oil industries (Source: Kaletsky 2015) Fall in prices of crude oil benefits the oil suppliers and manufacturers only in short run. Low oil prices helps in reducing the cost of manufacturing. Low prices reduce the global investments that put an obligation on the companies to reduce its spending. This makes thousands of people redundant and jobless. The importers are in advantage while the exports face loss due to fall in the prices of crude oil (Rautava 2013). The major oil importers such as China, United States and India benefit as they are able to import the oil at low prices. At the end if the fall in the oil price continue then no winners are left. The economy and industries only loose. The prices of Indian Crude oil prices have fallen by fifty seven percent. The fall in the prices of crude oil has not only affected the refining industries in India but also the upstream oil and gas industry in the economy as a whole. The sustained fall in prices of crude oil is beneficial for the Indian economy (Platts.com. 2016). Since India is the major importer of oil fall in the price of crude oil will benefit the economy and derivatives of oil suppliers. The country will be able to save on its imports and even the oil derivatives will benefit such as auto, paint, oil, and aviation industries. The input costs or the costs of productions will also fall for the oil derivative companies as the raw materials is available at lower prices. India is one of the major importers of oil and its accounts for eighty percent of total oil consumption. The current account deficit is narrowed due to decrease in the value of imports. Oil prices affect the prices of other complement goods as well. As the price of crude oil falls the overall prices of goods and services also fall in the economy (Reboredo et al. 2016). Fall in the prices of crude oil led to the rise in the budget deficit of Saudi Arabia. The budget deficit accounted for twenty percent of the nations GDP. The consequence of the rise in budget deficit is that Saudi Arabian countries have started investing in new projects and resources other than oil. The suggestion of the government is to cut the future spending on production and exploration by twenty five percent to balance the budget and reduce the deficit. The debt of the countries is rising due to lower profits that the country is generating (Kilian and Murphy 2014). The revenue of the Gulf oil producers fell by twenty one percent. The major revenue generation of the country depends on the on the oil export revenues. CAPEX is capital expenditure that is the money that is invested by a firm to acquire and upgrade fixed and physical assets such as buildings and equipment for a new business or project. Figure: impact of fall in oil prices on Gulf producers (Source: Forbes.com. 2016) Impact of fall in oil price on country depends on trade pattern of the country. The countries, which has larger share in oil import are benefitted from fall in oil price. Fall in oil price improves the terms of trade of the oil importing countries in short run. On the other hand, the income of net oil exporters decreases due to fall in oil price. Moreover, decline in oil price reduces the cost of production of business due to fall in transportation costs. Fall in production cost influences product price to fall in medium term. Reasons of Saudi Arabias inactiveness in the market The main strategy of Saudi Arabia was to gain the major market share by supplying the oil at lesser price. Saudi Arabia refused to follow the strategy set by OPEC countries. The strategy of OPEC was to share the production with its member countries that was motivated by Iraq and Irans demand for larger quotas to hold future production (Blanchard and Riggi 2013). The policy of cutting down the prices would mean cutting down the production of crude oil. This would lead the OPEC countries to lose the major market share and its rivals gain the benefit. Iran and Iraq are the main political rivals of Saudi Arabia and hence it will not take any actions that will benefit its rivals. Cut in the prices of oil and cut in the production will benefit the rivals which Saudi Arabia will never follow. Then unity of the OPEC countries is getting hampered due to the disapproval of rules and policies set by the organization. In order to avoid further problems Saudi Arabia should follow the policies set by the OPEC organization (Next.ft.com 2016). Moreover, it has been argued by some market analysts that Saudi Arabia has enough reserve of money to spend in the economy. Therefore, decrease in oil price would not affect the country much. It has less incentive to influence oil price. The main motive of Saudi Arabia is capturing oil market. In order to do this country has let the oil price to fall below marginal level to move out potential competitors from the market. Less competitors in the market might help the country to acquire more market share i n long run. Saudi Arabia is a cartel of oil producers. The OPEC countries had decided to cut the production by fifty percent. Saudi Arabia did not agree to it and indulged in oversupplying the product due to which the price for oil rose. The main reason for Saudi Arabia not influencing the market is its small market share. Fall in prices led many new strategies such as CAPEX cuts by IOCs. The countries are engaging in producing more efficient product so that it has less emission of carbon dioxide (Griffin and Teece 2016). Its not only Saudi Arabia that contributes in large [production of oil to OPEC countries but Iraq is the largest producer of oil. International oil companies share the same vision with Iraqs policy to contract the effect and impact of the changes in the oil process on the economy. IOC has signed a deal to recommend the changes in the deals regarding the technical services. The main concern of IOC is on Iraqs policy of overproduction of oil. The main aim of the International oil companies is to keep the costs down where the profit generated from oil production will represent the price of the crude oils in the production sharing contracts (Alshehry and Belloumi 2015). Oil and Natural gas Corporation has decided not to cut CAPEX despite of the fall in the prices of crude oil. The CAPEX activities will result to a fall in the financial services and costs of providing oil. Various oil projects have been cancelled due to fall in the prices of crude oil. Due to cancellation of projects many people have been left jobless across the globe especially in the Gulf courtiers (Kilian and Lee 2014). It is essential for the government of Gulf countries to reduce the unnecessary expenditure in order to cope up with the decline in revenue that is arising due to fall in the prices of crude oil. Excess usage of oil leads to changes in climate that ultimately causes global warming hampering the environment. People are becoming aware of the environment that is pollution free and healthy (Alkhathlan and Javid 2013). Hence, electric vehicles have been developed that reduces the amount of oil consumption. Experts predict the prices of oil to fall further in future to an ever diminishing supply of oil. The main factor that will help in reducing the price of oil is low production of oil by the OPEC countries especially Iran and Saudi Arabia. It is essential to boost the market of China and Europe in order to increase the demand of oil. The invention of shale oil in United States has contributed to a low demand of oil in OPEC countries (Turhan et al. 2013). Conclusion Rise or fall in price of one product influence the whole economy. Saudi Arabia is a key player in oil market. The main reason for the collapse of prices was the strategies adopted by Saudi Arabia. The collapse of price led to change in the marketing strategy of many countries and industries. Continuation of fall in prices of crude oil will damage the global economy as a whole specially to the oil producing industries and the countries engaged in import and export of oil. There were several factors that led the prices of crude oil to collapse. The main reason was the non- cooperation of the Saudi Arabia with OPEC countries and its policies. Fall in prices of crude oil has a long term negative impact on the global economy. The fall in the prices of crude oil has largely affected the Gulf oil nations as the revenue of these countries depends on the exports of oil. References Alkhathlan, K. and Javid, M., 2013. Energy consumption, carbon emissions and economic growth in Saudi Arabia: an aggregate and disaggregate analysis.Energy Policy,62, pp.1525-1532. Alshehry, A.S. and Belloumi, M., 2015. Energy consumption, carbon dioxide emissions and economic growth: The case of Saudi Arabia.Renewable and Sustainable Energy Reviews,41, pp.237-247. Arezki, R. and Blanchard, O., 2014. Seven questions about the recent oil price slump.IMFdirect-The IMF Blog. Arouri, M.E.H. and Rault, C., 2012. Oil prices and stock markets in GCC countries: empirical evidence from panel analysis.International Journal of Finance Economics,17(3), pp.242-253. 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