Reduction In Profits Research Articles

Collection decisions and coordination in a closed-loop supply chain under recovery price and service competition

<p style='text-indent:20px;'>With the increasing growth of consumers' request for recovery channels, in addition to collecting price, the collecting service has gradually become a competitive point for collectors to collect used products. Focusing on a closed-loop supply chain (CLSC) with recovery competition (on collecting price and collecting service) and distinguishing collecting quality, we propose two models (decentralized and centralized models) to study the collection strategies and profits of the CLSC. Moreover, we analyze the impact of the collecting competition and quality on the CLSC. Finally, a revenue-cost sharing contract (RCSC) is introduced to coordinate the supply chain. And a numerical example is illustrated to verify the contract's efficiency. It is found that the collected quantities and profits of the CLSC members are positively correlated with the remanufacturable ratio. The collecting competition dampens consumers' enthusiasm for recycling, which is not conducive to collectors to carry out collecting activity, resulting in the reduction of the CLSC's profit. The collectors appropriately improving collecting prices and service levels can increase the collected quantities, but to cope with the increasing competition, increasing collecting price is the main means for collectors to attract consumers to recycle. In addition, the designed RCSC can effectively improve the CLSC's efficiency and increase the profits of each party.</p>

'Same storm, different boats': the COVID-19 pandemic and its impact on Indonesian public companies

This study aims to evaluate the financial performance of Indonesian public companies before and during the COVID-19 pandemic. Data were collected from the Osiris database. Net income and return on assets (ROA) were used as proxies of financial performance, and the current and solvency ratios were also evaluated. Using the Wilcoxon signed-rank test and Pearson correlation test, this study found a significant difference in financial performance before and during the first year of the pandemic. The results show that 337 companies (68%) experienced a reduction in net income in 2020, while 115 companies (31%) recorded unchanged or even higher profits. Although this study found a statistical difference between the financial indicators before and during the pandemic, not all companies recorded a worse financial performance. Before the pandemic, those with substantial assets and stronger financial performance tended to experience only a minor profit reduction and higher net income in 2020.

Online Food Delivery- A Solution for Upsurging Restaurant Business

The Online Food Delivery Service offered by third-party food delivery companies has played an inevitable role in the growth and revenue of the restaurant food business. Through this service, along with serving foods to dine-in consumers, the restaurants canearn income by delivering foodsto customers at their doorstep. Under this study, the major objectives are to describe the evolution and background of online food delivery service and to examine the chief reasons behind the preference of online food delivery business by restaurants.The study concluded that the restaurants choose online food delivery businesses of third-party food delivery companies as a solution for several problems which they have faced while doing their business. Thereisa reduction in the number of dine-in customers, reduction in revenue and profit, limited seating capacity, lack of popularity, limited marketing space for doing business and the absence of new business opportunities. The study also illustrates major innovations that took place in the space of the food delivery segment, which includes the Restaurant to Consumer Model, Platform to Consumer Model and Full Stack Model of Food Delivery.

How to design a zero-emissions vehicle mandate? Simulating impacts on sales, GHG emissions and cost-effectiveness using the AUtomaker-Consumer Model (AUM)

Although numerous studies investigate the impacts of policy on zero-emissions vehicle (ZEV) sales, few address the impacts of a ZEV sales mandate and its particular design features. We use the AUtomaker-consumer Model (AUM) to simulate varying designs of a ZEV mandate in Canada's light-duty vehicle sector, requiring 30% ZEV sales by 2030. Design features include: different penalties for non-compliance, different allocations of credits per ZEV type, and the allowance of banking credits across years. For each policy design, we consider impacts on ZEV adoption, GHG emissions, consumer surplus, automaker profits, and overall policy cost-effectiveness. Results demonstrate trade-offs among the policy designs. Generally, ZEV mandate designs that are more effective at increasing ZEV adoption and decreasing GHG emissions also induce larger reductions in consumer surplus and automaker profits. To achieve the ZEV sales goal, simulations show that a higher non-compliance penalty (CDN$ 10k per credit) is needed. ZEV adoption and GHG reductions are also improved by a “One credit per ZEV” scheme, rather than a “California-style” scheme that gives multiple credits per battery-electric vehicle. Further, allowing automakers to bank credits softens the policy impact on profit and increases automaker compliance in initial years. Across these different design combinations, we find that the most cost-effective design ($CDN/tonne mitigated, including consumer surplus and automaker profits impacts) utilizes a $10k non-compliance penalty and “One credit per ZEV” system that allows banking. Our analysis demonstrates the importance of various ZEV mandate design features, and the complex trade-offs involved among various policy goals.

Antidumping, firm performance, and subsequent responses

Based on antidumping (AD) cases initiated by 25 countries/regions against China, this study explores AD’s effects on exporters’ performance and their subsequent response. We find that AD significantly reduces targeted exporters’ profitability, market value and export volume. Exporters try to increase their domestic sales and profits by reducing profit margins and period expenses, as the main response. The responses effectively counteract the profit reduction in 1–2 years. Further tests reveal that exporters learn from previous cases and that the follow-up AD cases cannot considerably damage exporters’ profitability; however, the negative effects on market value and export volume still exist.

RETRACTED: Pumped hydro energy storage arbitrage in the day-ahead market in smart grid using stochastic p-robust optimization method

• Individual participation of pumped hydro energy storage (PHES) in day-ahead market. • Use of stochastic optimization to model the day-ahead market price uncertainty. • Stochastic p-robust optimization (SPRO) is proposed to measure the financial risks. • Risk-guaranteed strategy is obtained in comparison with risk-neutral strategy. • Robust bidding and offering strategies for PHES are obtained with SPRO method. Individual operation of pumped hydro energy storage (PHES) as large-scale energy storage needs the bidding and offering curves to participate, as a prosumer, in the day-ahead electricity market. Therefore, in this paper, by taking advantage of stochastic and robust optimization, a new stochastic p-robust optimization (SPRO) method is proposed to deal with the financial risks of the day-ahead price uncertainty. The proposed method compares the profit of PHES with the relative regret to get a risk-controlled strategy. According to obtained results, reducing the robustness parameter (p) from the p=+∞ to p=0.21, the profit, and the maximum relative regret are reduced by $ 2611 and 15.02 %, respectively. In other words, with a 19.11 % decline in profit, the maximum amount of relative regret decreased by 41.30 %. Therefore, it can be shown that by a few reductions in profit, the maximum amount of relative regret decreases significantly. At the same time, the robustness of PHES is guaranteed against the day-ahead market price uncertainty. Finally, the risk-based bidding and offering curves are derived using the results of the proposed SPRO method.

ОЦІНЮВАННЯ ІНВЕСТИЦІЙНИХ РИЗИКІВ ПРОМИСЛОВОГО ПІДПРИЄМСТВА

Анотація. Метою статті є дослідження особливостей інвестиційних ризиків і визначення відповідних методів щодо їх оцінювання у процесі господарської діяльності підприємстві. Сформовано науково-практичний підхід щодо економіко-математичного моделювання на основі мінімізації ризику інвестиційного портфеля задля ухвалення ефективних управлінських рішень. Сучасні методи управління економікою значною мірою спираються на застосуванні економіко-математичних методів, а саме моделювання. Процес інвестування пов’язаний із ризиками. Нестабільність у розвитку сучасної економіки призводить до похибок при ухваленні рішень щодо управління промисловим підприємством. Перш за все, це пов’язано з розподілом фінансових коштів, які зберігаються на балансі підприємств. У підсумку це призведе до наявності фінансового ризику при розподілі фінансів. Наукові доробки зумовлюють актуальність і необхідність подальшого дослідження питання щодо особливостей інвестування для підприємств із відповідним оцінюванням ризику. Формально представлена постановка завдання і послідовне її вирішення шляхом реалізації відповідного алгоритму задля коригування його вартості.. Запропоновано постановку і вирішення завдань формування фінансового портфеля на основі мінімізації фінансового ризику і відповідних втрат, що дозволяє ефективно розподілити фінансові кошти промислового підприємства. Доведено, що для збереження стабільної структури портфеля доцільно мінімізувати дисперсію за обмежень, які накладені на величину інвестицій і ставку прибутковості. Аналіз отриманих результатів економіко-математичного моделювання на основі статичних даних щодо діяльності промислового підприємства ПАТ «Запоріжсталь» підтвердив дієвість запропонованого підходу, що дозволило скоригувати вартість портфеля в бік його зменшення. Доведено, що прибутковість портфеля не може бути більшою від прибутковості самого дохідного цінного папера (акції), що входить у портфель; завжди варто обирати між збільшенням прибутковості і зменшенням ризику. Ключові слова: ризик, інвестиції, портфель, модель, підприємство, прибутковість. Формул: 25; рис.: 1; табл.: 2; бібл.: 17.

Renewable Power Potential from Municipal Solid Waste: A Case Study in Jiangxi, China

Development of renewable energy is important to modern society because climate change induced from fossil use has resulted in severe and possibly irreversible environmental impacts such as sea level rise, desertification, diminished land productivity, and increased possibility of extreme events. Therefore, the utilization of renewable and clean energy not only increases regional energy security but also alleviate the environmental risk. In this study, we employ the lifecycle assessment to examine the electricity generation from the use of municipal solid waste in China, and then investigate the emission reduction from this application. Different supply patterns of the wastes are also compared to make the results more robust. The results show that if recycled wastes are fully utilized, approximately 11,107 GWh can be generated, along with a profit of $1.2 billion from energy sales. In this case, the CO2 emission will reduce by 9.7 million metric tons. If the food waste is used in compositing and animal feed, the net power generation and emission reduction are about 8,216 GWh and 7.32 million metric tons, respectively. If additional 30% of recycled wastes are assumed to be utilized in their past use, the power generation, profit, and emission reduction will further decrease to 5,750 GWh, $697 million, and 5.12 metric tons, respectively. The results point out that the utilization of recycled wastes can effectively reduce the reliance on fossil fuels, improve energy security, and increase social welfare. Insights of the results and policy implications are also discussed in detail.

Development of a methodology for increasing the economic efficiency of a commercial real estate facility within the framework of a reconceptualization project in the context of current market trends

Each commercial real estate facility, whose functional concept remains unchanged for a long time, can be exposed to the influence of external and internal factors, that may reduce its economic efficiency and purchasing power that need to be restored by landlords who will take urgent measures. Reconceptualization is a method used to improve the economic efficiency of commercial and leisure property. The co-authors propose a methodological framework of selection, assessment and substantiation of project solutions, make a list of works and determine the general strategy of a reconceptualization project to increase the economic efficiency of a commercial real estate facility in the current market environment. It should also be noted that an economic crisis magnifies weaknesses of entertainment retail centres, and any reconceptualization strategy must take account of this phenomenon. Firstly, it is necessary to analyze the reasons for profit reduction, assess the resources and the potential of a facility, its market environment, and the prospects for its further operation. Under these conditions, reconceptualization may be regarded as an anti-crisis development strategy.

Solving a warehouse inventory control problem by Benders decomposition and the Lagrangian relaxation

In modern businesses, organizations hold large numbers of inventory items, but cannot find their inventory system economical to make policies for the management of individual inventory items. In this paper, a mathematical model is presented to classify inventory items, taking into account significant profit and cost reduction indices. The model has an objective function to maximize the net profit of items in stock. Limitations such as budget even inventory shortages are taken into account too. The mathematical model is solved by the Benders decomposition and the Lagrange relaxation algorithms. Then, the results of the two solutions are compared. The TOPSIS technique and statistical tests are used to evaluate and compare the proposed solutions with one another and to choose the best one. The results show that the Lagrange algorithm is more efficient for solving the model in terms of both computational time and quality. Subsequently, several sensitivity analyses are performed on the model, which helps inventory control managers determine the effect of inventory management costs on optimal decision making and item grouping. Finally, according to the results of evaluating the efficiency of the proposed model and the solution method, a real-world case study is conducted on the ceramic tile industry. Based on the proposed approach, several managerial perspectives are gained on optimal inventory grouping and item control strategies

Effects of the Decision-Making Process on the Competitive Advantage in Costs Obtained After Implementing Outsourcing

This article aims to answer how the decision process model used to adjudicate on the implementation of outsourcing in the company affected the competitive advantage in costs obtained by the organization after the implementation of subcontracting. Therefore, the financial results obtained by the company in the period from 2015 to 2019 were analysed in order to know if there were competitive advantages in costs arising from the decision to implement outsourcing. Studies were also carried out on the structure of the decision-making process adopted by the entity to identify the level of efficiency of this model in the implementation of outsourcing, and finally, the impacts generated on these advantages due to the degree of efficiency of the tool application were verified. The research strategy was qualitative and quantitative, with an exploratory bias, bibliographic survey and structured interview. A mathematical model was used based on 14 (fourteen) decision-making efficiency indicators, 4 (four) efficiency level classification indicators and 5 (five) classification criteria for performance. The results showed that there is sufficient evidence to conclude that the low level of efficiency in the decision-making structure contributed to the high financial impact on Company Alpha and, consequently, to the negative impact on competitiveness acquired through the implementation of outsourcing in this entity, which caused financial disadvantages represented by losses in operating income and reduction in profitability.

Do Capital Requirements Make Banks Safer? Evidence From a Quasinatural Experiment

AbstractWe use the EBA capital exercise of 2011 as a quasinatural experiment to investigate how capital requirements affect various measures of bank solvency risk. We show that, while regulatory measures of solvency improve, nonregulatory measures indicate a deterioration in bank solvency in response to higher capital requirements. The decline in bank solvency is driven by a permanent reduction in banks’ market value of equity. This finding is consistent with a reduction in bank profitability, rather than a repricing of bank equity due to a reduction of implicit and explicit too-big-too-fail guarantees. We then discuss alternative policies to improve bank solvency.

The impact of abandoning social responsibility certifications: evidence from the decertification of SA8000 standard

PurposeIn recent years, many companies have decided to decertify from their previously adopted corporate social responsibility (CSR) standards. The aim of this paper is to explore the phenomenon by focusing on the most important auditable CSR standard: Social Accountability 8000 (SA8000).Design/methodology/approachFirst, an event study is performed on a dataset composed of 136 SA8000 decertified public listed companies to analyse the possible relationship between certification, decertification and firms’ operating performance. Second, the authors shed light on the differences between 94 SA8000 (still) certified and the abovementioned 136 decertified firms. Finally, 10 interviews are conducted with decertified firms in the dataset to deepen the outcomes of the previous analyses.FindingsThe results show that, despite an initial positive effect in terms of sales and profitability, decertified companies experienced a reduction in productivity and profitability in the years following the certification, while positive outcomes emerged after the decertification. The study also highlights that certified and decertified firms differ in terms of home country, industry and labour intensity.Originality/valueThe paper contributes to the literature by opening the debate on an important but unexplored research area: the decertification from the most popular CSR standard, i.e. SA8000, and its relationship with firms' performance. In doing this, it also highlights the main differences between decertified and certified companies.

Impact of Merger on Operational and HR Efficiency: A Case Study of the State Bank of India

Purpose: Analysing financial performance is one of the popular methods for measuring operational efficiency of a firm. Ratio analysis is an important tool of financial analysis. The analysis of key performance parameters enables diverse group of stakeholders to obtain information about profitability and growth prospects. Mergers and acquisitions are popular means of inorganic growth. The Indian Banking Industry has used this effective tool to consolidate and grow in size. Through M&A, acquired banks get a new name, structure, products and services. However, the risk of NPAs continues to be a major problem for banks. In order to study the effectiveness of a merger, analysing financial performance prior to and after merger becomes important. The State Bank of India merger has been taken up for the study, since following the merger there is a substantial increase in both the market share as well as asset base of the bank. Design/Methodology/Approach: This paper studies the result of mergers on financial indicators, market performance, asset quality, liquidity position and employee productivity of SBI after it merged with its 5 associate banks and BMB through ratio analysis. The ratios indicating the performance parameters have been taken from secondary sources such as moneycontrol.com, stock-financials.valuestocks.in. etc. A comparison of various financial ratios is made to determine the change in the performance parameters of the bank. Findings/Result: The study highlights reduction in profitability, increase in cost to income ratio, slight improvement in liquidity, decline in asset quality and market performance and a slight decrease in employee productivity after the merger. Originality/Value: This paper studies the effectiveness of mergers in terms of change in key financial performance parameters. Paper Type: Research Case Study based on company financial analysis.

Structural break-aware pairs trading strategy using deep reinforcement learning.

Pairs trading is an effective statistical arbitrage strategy considering the spread of paired stocks in a stable cointegration relationship. Nevertheless, rapid market changes may break the relationship (namely structural break), which further leads to tremendous loss in intraday trading. In this paper, we design a two-phase pairs trading strategy optimization framework, namely structural break-aware pairs trading strategy (SAPT), by leveraging machine learning techniques. Phase one is a hybrid model extracting frequency- and time-domain features to detect structural breaks. Phase two optimizes pairs trading strategy by sensing important risks, including structural breaks and market-closing risks, with a novel reinforcement learning model. In addition, the transaction cost is factored in a cost-aware objective to avoid significant reduction of profitability. Through large-scale experiments in real Taiwan stock market datasets, SAPT outperforms the state-of-the-art strategies by at least 456% and 934% in terms of profit and Sortino ratio, respectively.

Lockdown: How the COVID-19 Pandemic Affected the Fishing Activities in the Adriatic Sea (Central Mediterranean Sea)

The coronavirus disease 2019 (COVID-19) has brought a global socio-economic crisis to almost all sectors including the fishery. To limit the infection, governments adopted several containment measures. In Italy, Croatia, and Slovenia, a lockdown period was imposed from March to May 2020, during which many activities, including restaurants had to close or limit their business. All of this caused a strong reduction in seafood requests and consequently, a decrease in fishing activities. The aim of this study is to investigate the effects of the COVID-19 in the Northern and Central Adriatic fleet, by comparing the fishing activities in three periods (before, during, and after the lockdown) of 2019 and 2020. The use of the Automatic Identification System (AIS) data allowed us to highlight the redistribution of the fishing grounds of the trawlers, mainly located near the coasts during the 2020 lockdown period, as well as a reduction of about 50% of fishing effort. This reduction resulted higher for the Chioggia trawlers (−80%) and, in terms of fishing effort decrease, the large bottom otter trawl was the fishing segment mainly affected by the COVID-19 event. Moreover, by analysing the landings of the Chioggia fleet and the Venice lagoon fleets, it was possible to point out a strong reduction both in landings and profits ranging from −30%, for the small-scale fishery operating at sea, to −85%, for the small bottom otter trawl.

Risk of Fraudulent Claims and Financial Distress in Non-Life Insurance Companies in Kenya: A Structural Equation Modeling Approach

Financial distress (FD) is a common occurrence in Kenyan commercial sector and is not lacking in non-life insurance companies in Kenya. Several insurance companies have been placed under statutory management for failure to pay genuine claims and other creditors. Insurance companies provide unique financial services, not only to individuals but also to the growth and development of the economy; giving employment to workers and dividends to investors. Financial distress places insurable properties and businesses at risk thus reducing the general public confidence in the insurance sector. For this paper, the goal was to investigate whether fraudulent claims (FC) significantly cause financial distress in non-life insurance companies in Kenya. In accounting for insurance fraudulent claims, increases in fraudulent claims mean a reduction of profitability of an insurer; and payment of fraudulent claims drains the insurer’s cash flow, thus causing financial distress. Out of 37 non-life insurance companies, registered in 2018 in Kenya, four insurers were subjected to Pilot Testing and another four companies declined to participate in the survey. Secondary data from Insurance Regulatory Authority website was retrieved for calculations of Z-scores using Altman’s [1], amended formula. Using the discriminative Z-score formula, 52% of the non-life insurance companies in 2018 were financially distressed, compared to 48% in 2017. However, when considering the average of ten years (2009 to 2018), financially distressed companies were 38%. To confirm this distressful situation, primary data was also collected through a questionnaire. A partial least squares structural equation modelling (PLS-SEM) approach was employed to affirm the researcher’s hypotheses and further test whether theoretical framework was supported by primary data analysis. Goodness-of-fit (GoF) indices were used to assess the model’s goodness of fit. The structural path from FC to FD was found to be significant at 5% level of significance. Financial Distress (FD) increased with an increase in fraudulent claims (FC) (regression coefficient, β= 0.32, 95% CI (0.16, 0.4)). This means that the relationship was significant in this study. In other words, for every unit increase in FC, FD significantly increased by 0.32. However, the indirect effect of FC on FD via IRA was not significant. Hence, IRA supervision was not a significant mediating factor. In a research in the USA by A. M. Best Company [2], alleged fraud in insurance claims was identified as one of contributors of insurance companies’ failure, accounting for 10%. An insurance fraud survey carried out by an audit firm KPMG [3] showed that Kenyans could have paid over Kshs 30 billion to cover for fraud. The researchers further observed that companies’ employees were found to be colluding with policyholders and claims agents to doctor and file illegitimate claims with the insurers. The insurance business classes which are most affected by fraud are motor and medical classes. The researchers recommends that members of staff of insurance companies be trained to effectively detect fraudulent claims; and that the insurance act be amended to give power to the board of directors in stamping out of financial distress in the insurance industry.

Risk hedging strategies for electricity retailers using insurance and strangle weather derivatives

With the increase of extreme weather events and the penetration of distributed energy resources, electricity retailers will encounter more risks at both transmission and distribution levels during the business operation process. For risks at the transmission level, huge damages to the transmission lines and towers caused by extreme events, like bushfires, ice storms, and flooding, will lead to power shortage. For risks at the distribution level, demand variations in accordance with temperature change will result in energy procurement difficulty for the retailers. In this paper, besides the normal bilateral contract, the insurance, the strangle weather derivatives, and the energy storage system are implemented to hedge the risks at both the transmission and distribution levels. Simulation results show that the proposed model ensures higher profits for the retailers in summer and winter compared to the conventional model when there are no extreme events occurring. When there are extreme events in both summer and winter, the proposed model incurs lower reduction of profits than that of the conventional model. In brief, the overall profits of the retailer using the proposed hedging model are higher than the convention model, and the overall profit variation of the conventional model is about 26% higher than the proposed model. Furthermore, when the budget of the retailer is sufficient, all three hedging tools can be invested. Whereas when the budget of the retailer is limited, the investment order should be insurance the first, strangle weather derivatives the second, and energy storage system the third.

SILVerIn: Systematic Integrity Verification of Printed Circuit Board Using JTAG Infrastructure

A printed circuit board (PCB) provides necessary mechanical support to an electronic system and acts as a platform for connecting electronic components. Counterfeiting and in-field tampering of PCBs have become significant security concerns in the semiconductor industry as a result of increasing untrusted entities in the supply chain. These counterfeit components may result in performance degradation, profit reduction, and reputation risk for the manufacturers. While Integrated Circuit (IC) level authentication using physical unclonable functions (PUFs) has been widely investigated, countermeasures at the PCB level are scarce. These approaches either suffer from significant overhead issues, or opportunistic counterfeiters can breach them like clockwork. Besides, they cannot be extended to system-level (both chip and PCB together), and their applications are also limited to a specific purpose (i.e., either counterfeiting or tampering). In this article, we introduce SILVerIn , a novel systematic approach to verify the authenticity of all chips used in a PCB as well as the board for combating attacks such as counterfeiting, cloning, and in-field malicious modifications. We develop this approach by utilizing the existing boundary scan architecture (BSA) of modern ICs and PCBs. As a result, its implementation comes at a negligible (∼0.5%) hardware overhead. SILVerIn is integrated into a PCB design during the manufacturing phase. We implement our technique on a custom hardware platform consisting of an FPGA and a microcontroller. We incorporate the industry-standard JTAG (Joint Test Action Group) interface to transmit test data into the BSA and perform hands-on measurement of supply current at both chip and PCB levels on 20 boards. We reconstruct these current values to digital signatures that exhibit high uniqueness, robustness, and randomness features. Our approach manifests strong reproducibility of signatures at different supply voltage levels, even with a low-resolution measurement setup. SILVerIn also demonstrates a high resilience against machine learning-based modeling attacks, with an average prediction accuracy of ∼51%. Finally, we conduct intentional alteration experiments by replacing the on-board FPGA to replicate the scenario of PCB tampering, and the results indicate successful detection of in-field modifications in a PCB.

Economic implications of the loss of glyphosate and paraquat on Australian mixed enterprise farms

CONTEXTGlyphosate and paraquat are effective, affordable non-selective herbicides widely used in Australian agriculture. However, for reasons described in this study, their use is under threat and a ban on their use is a possibility. OBJECTIVEThis study describes the farm business and farming system changes resulting from a ban on use of glyphosate and paraquat in a main mixed farming region of Australia. METHODSThe bioeconomic farm model, MIDAS, is used to represent mixed enterprise farms of Western Australia. The model incorporates the suite of management strategies and tactics farmers are likely to employ in response to loss of access to the key herbicides, glyphosate and paraquat. Scenario analyses are applied to different farm types. RESULTS AND CONCLUSIONSLoss of these herbicides is estimated to cause increased costs of crop production and large declines in farm profit, if the herbicide ban does not similarly apply to other major grain exporters. Farming systems shift towards sheep production and away from cropping, increasing farm greenhouse gas emissions. Farm businesses that are more crop dominant experience the greatest declines in profit. However, if a global ban on glyphosate and paraquat applies, then Australian farm businesses will be advantaged as they rely far less on glyphosate-tolerant crops. SIGNIFICANCEDespite several tactics and investments that farmers might employ to combat the loss of these herbicides, none prevents a reduction in farm profit. For all farm types considered under all management scenarios, loss of these herbicides generates sizeable declines farm profit. The likelihood of such large declines in profit however should spur the invention and development of cost-effective means of weed control.