A-Level Geography - Human - International Trade Case Studies
- Created by: Noah_S
- Created on: 12-04-22 10:54
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- International Trade Case Studies
- World Trade - Coffee
- Production
- Grows in hot, wet areas close to the equator
- Biggest producer is Brazil, exporting 16.5% of all coffee in 2020
- Certain weather conditions make outbreaks of diseases and pests more likely
- Arabica and Robusta are the two main coffee beans
- 70% of world coffee production is arabica
- Plants are at risk to diseases like Bacterial Blight and Coffee Leaf Rust
- Farmers use fertilisers and pesticides
- Often imported, making them expensive
- Grows in hot, wet areas close to the equator
- Global Trade
- World's 112th most traded product in 2020
- Exporters of Coffee are LICs/NEEs, and importers are HICs
- Top importers are US (17.6%), Germany (11%) and France (6.32%) in 2020
- The concept of Supply and Demand can change prices, affecting coffee farmers
- Coffee exports from Vietnam has increased since 1987, exporting >450 million kg of coffee in 1999
- Caused prices to fall from $1.19 per kg in Jan 2000 to $0.68 per kg by March 2001, causing many South American growers to go out of business
- TNCs and Fairtrade
- Around 7-10% of the price sold at supermarkets go to coffee farmers
- TNCs receive most of the profits for processing the beans, which is of low value on its own
- Coffee TNCs are based in HICs, meaning their profits go to those countries instead of where coffee is grown
- ECOM, Louis Dreyfus, Neumann & VOLCAFE control ~40% of global coffee exports
- Coffee-producing countries compete to attract TNCs by cutting wages, labour regulations and environmental protection
- Intensive farming as monocultures has led to a loss of biodiversity in Brazil
- In 1992, Fairtrade was set up to work with producer organisations to give them power over their prices to improve coffee farmers lives
- There were 329 Fairtrade producer organisations in 2011, selling >80,000 tonnes per year
- Around 7-10% of the price sold at supermarkets go to coffee farmers
- Production
- TNC - Coca-Cola
- Organisation
- Coca-Cola is sold in more than 200 countries
- 70% of sales are outside of NA
- Biggest manufacturer of soft drinks in the world, with 400 different products
- Brands include Coca-Cola, Fanta, Smartwater and Costa Coffee
- In 2015, Coca-Cola was rated as one of the most valuable brands in the world
- Shareholders have received 53 years of constitutive dividend increases
- Coca-Cola generates >$45 Billion a year in revenue
- Been quick to seize new markets in eastern Europe, Africa and Asia
- Coca-Cola may have established the red and white colour scheme now used for Santa
- Coca-Cola is sold in more than 200 countries
- Impacts
- Social
- Has trading and education programmes, like aiming to enable 5 million female entrepreneurs by 2020 (5by20)
- Massive employment opportunities both directly and indirectly
- Harsh working conditions in some bottling plants
- Millions spent countering links to obesity; £4.86 million spent setting up European Hydration Institute that promotes soft drinks
- Economic
- Franchise operation means local bottlers profit from sales
- Investment in new markets drives economic growth; $2 Billion invested in India since 2011
- Majority of profits returned to shareholders in US
- Environmental
- Used marketing network to increase awareness of recycling
- Initiates sustainable agricultural schemes; Constructed rainwater harvesting system in China
- Exhaustion of local water supplies; In 2012, Coca-Cola used more water than 25% of the world's population
- Social
- Organisation
- World Trade - Coffee
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