...literature with regard to the actual impact of the system. The results show that the standards set by Fairtrade are actually fair for their farmers, however a lack of transparency and traceability hinders their proper implementation. Furthermore, Fairtrade standards appear to have even negative effects on farmers that are not part of their organisation caused by rough price competitions as well as on the society as a whole since it hinders an autonomous development of the poor nations. Key Words: Fair Trade, Standards, Developing countries, Livelihood 1 1. Introduction The rising globalization has brought a lot of opportunities to developing countries since their agricultural products can now easily be purchased from all over the world. Due to poor economic, social and political conditions, their producers are however often underpaid and treated badly, while major corporations make the most profit out of it. While moral concerns about the origin of products are arising more and more within the last centuries in the western world, the willingness to pay extra for good worker treatment is of high interest for international trade. With the aim to support the poorest, Fairtrade international has been established in the 1980ies. Their idea is to offer producers a better deal and improved terms of trade by building partnerships between producers in developing countries and consumers in developed countries. The developing...
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...Table of Contents EXECUTIVE SUMMARY 2 INTRODUCTION 3 I- MAIN RESULTS 4 A) CURRENT MARKET SIZE AND STRUCTURE OF FAIR TRADE MARKET 4 B) PAST MARKET EVOLUTION 6 II- THE COMPANY 8 A) COMPANY’S CURRENT SITUATION AND RECENT HISTORY 8 B) MAIN FEATURES OF COMPANY’S OVERALL STRATEGY 8 C) STRATEGIC PLACE OF THE QUINOA IN OVERALL ALTER ECO STRATEGY 10 III- THE COMPETITION 10 A) IDENTIFICATION OF THE MAIN COMPETITORS 10 B) MARKET POSITION OF EACH COMPETITOR 12 IV- CUSTOMERS 12 A) OVERALL CUSTOMER PROFILE 12 B) CUSTOMER MARKET SEGMENTS 15 C) COMPANY BRAND POSITIONING 16 a) Product value offering 16 b) Service value offering 16 c) How does company position its offering in relationship to competitors in order to attract customers? 16 V- MARKETING MIX 17 A) PRODUCT POLICY 17 B) PRICING POLICY 18 C) DISTRIBUTION POLICY 19 D) COMMUNICATION POLICY 20 CONCLUSIONS 22 A) SWOT ANALYSIS 22 B) RECOMMENDATIONS 22 ANNEXES 25 Executive Summary Alter Eco is a Fair trade company which opened it first small store in PARIS in 1999. Few years later, Alter eco has expended it products range including the tea, chocolate, rice, coffee and few others products and developed the food product for retail chains. It first retailing partners is Monoprix. In 2003, one year after the development of the brand, alter eco launched another products as for example olive oil, hearts of palms and quinoa. More than their new products, they sold also their products in another stores as Cora...
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... PGDM 2012-2014 INTRODUCTION Just Us! (JU) Café is the leading Fair Trade (FT) coffee cooperative, wholesaler and retailer in Nova Scotia, Canada, and United States. JU vision is “to be a leading Fair Trade business that builds on quality, professionalism and innovation for the benefit of all their stakeholders”. JU core differentiation is selling FT and organic model which is social and environmental responsibility, premium quality. As FT market is growing, JU is looking for expanding its current business or developing a new product line to maintain current market share. Meantime, they facing challenges from having compete with several big brands (ie such as Starbuck, Mcdonald, Kraft who also introduce the FT certified coffees, or Rainforest Alliances certified coffees) and small coffee shops to retain its brand recognition of its customers who request an unique and appealing products. Following are the results from this paper: 1. Market for coffee and tea is in growing, which encourage Just Us! to invest more to expand their market share, compare to sugar and cocoa. 2. Our target segment is mostly those young and educated, say college students and age between 31- 44 years, who are base their purchase decisions on ethical behavior of companies. 3. Serving the interests of fair trade producers by developing personal and long term relationships. External Analysis: PORTER’S FIVE FORCES Threat of New Entrants:...
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...The Political Economy of International Trade Chapter Outline OPENING CASE: Why Are Global Food Prices Soaring? INTRODUCTION INSTRUMENTS OF TRADE POLICY Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U.S. Magnesium Seeks Protection THE CASE FOR GOVERNMENT INTERVENTION Political Arguments for Intervention Country Focus: Trade in Hormone-Treated Beef Economic Arguments for Intervention THE REVISED CASE FOR FREE TRADE Retaliation and Trade War Domestic Politics DEVELOPMENT OF THE WORLD TRADING SYSTEM From Smith to the Great Depression 1947-1979: GATT, Trade Liberalization, and Economic Growth 1980-1993: Protectionist Trends The Uruguay Round and the World Trade Organization WTO: Experience to Date The Future of the WTO: Unresolved Issues and the Doha Round Country Focus: Estimating the Gains from Trade for America FOCUS ON MANAGERIAL IMPLICATIONS Trade Barriers and Firm Strategy Policy Implications SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Agricultural Subsidies Learning Objectives 1. Describe the policy instruments used by governments to influence international trade flows. 2. Understand why governments...
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...hxy CHAPTER 5 NONTARIFF TRADE BARRIERS MULTIPLE-CHOICE QUESTIONS 1. THE IMPOSITION OF A TARIFF ON IMPORTED STEEL FOR THE HOME COUNTRY RESULTS IN: a. Improving terms of trade and rising volume of trade b. Higher steel prices and falling steel consumption c. Lower profits for domestic steel companies d. Higher unemployment for domestic steel workers 2. Which of the following refers to a market-sharing pact negotiated by trading partners to moderate the intensity of international competition? a. Orderly marketing agreement b. Local content requirements c. Import quota d. Trigger price mechanism 3. Suppose the United States and Japan enter into a voluntary export agreement in which Japan imposes an export quota on its automakers. The largest share of the export quota’s “revenue effect” would tend to be captured by: a. The U.S. government b. Japanese automakers c. American auto consumers d. American autoworkers 4. Suppose the government grants a subsidy to domestic producers of an import-competing good. The subsidy tends to result in deadweight losses for the domestic economy in the form of the: a. Consumption effect b. Redistribution effect c. Revenue effect d. Protective effect 5. Tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies. This is because, unlike domestic subsidies, import...
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...TASK ONE a) Identify the mission values and key objectives of Tate and Lyle. How far does the expression of vision values and mission affect the performance of the organization? Tate and Lyle’s mission is to focus on value-added products and extend its operation worldwide. This mission is fuelled by the company’s desire to increase profit. They also have a mission to be consistently first in customer satisfaction. The expression of vision values and mission are important as a means of focusing attention on the means and the ends ; a value statement reflects the means which will used to attain the ends spelt out in the mission statement. Mission serves a beacon for organization and its employees therefore, it becomes imperative to remain focus to its element like goals and objective, strategic intent and direction and vision. Rarick & Vitton(1995) concluded that having a mission statement significantly increases shareholder equity.These are some examples of well known companies statement and it has obviously affected their present success stories: * Wal-Mart: "To give ordinary folk the chance to buy the same thing as rich people." * 3M: "To solve unsolved problems innovatively." * Walt Disney: "To make people happy." b) What do you consider to be stakeholder’s main objectives? Do you think these objectives are met by Tate and Lyle’s activities? Many people are involved in running a business. Some have direct interest while others have indirect interest...
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...Answers to eThemes of the Times for Krugman/Obstfeld International Economics: Theory and Policy, 7e Chapter 1: Introduction "U.S. and Trade Partners Maintain Unhealthy Long-Term Relationship" By Louis Uchitelle, New York Times, Saturday, September 18, 2004 1. The subject of this article centers on the current account balance. Does this seem like an "international trade" or an "international money" issue? Answer: Aspects of the issue seem to overlap with both areas of international economics. The article discusses goods and services transactions [trade], as well as international borrowing and exchange rates [money]. 2. Many economists seem to be giving the issue of the current account a lot of thought. Does there seem to be a consensus in the article? Does your answer surprise you? Answers will vary. If anything, the consensus is confusion—confusion at how the deficit has persisted for so long with no severe consequences. Bergsten stands out as the most alarmed, though almost every economist seems a bit concerned about the trade deficit. This economist, on the contrary, is not concerned at all about the current account deficit, and you may come to your own conclusion upon reading further chapters. In general economists tend to agree about many big-picture issues, but may disagree occasionally where the data is open to interpretation or when more ideological considerations come into play. 3. Near the end of the article there is a logical fallacy...
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...Answers to eThemes of the Times for Krugman/Obstfeld International Economics: Theory and Policy, 7e 2 Krugman/Obstfeld, International Economics 7e Chapter 1: Introduction "U.S. and Trade Partners Maintain Unhealthy Long-Term Relationship " By Louis Uchitelle, New York Times, Saturday, September 18, 2004 1. The subject of this article centers on the current account balance. Does this seem like an "international trade" or an "international money" issue? Answer: Aspects of the issue seem to overlap with both areas of international economics. The article discusses goods and services transactions [trade], as well as international borrowing and exchange rates [money]. 2. Many economists seem to be giving the issue of the current account a lot of thought. Does there seem to be a consensus in the article? Does your answer surprise you? Answers will vary. If anything, the consensus is confusion—confusion at how the deficit has persisted for so long with no severe consequences. Bergsten stands out as the most alarmed, though almost every economist seems a bit concerned about the trade deficit. This economist, on the contrary, is not concerned at all about the current account deficit, and you may come to your own conclusion upon reading further chapters. In general economists tend to agree about many big-picture issues, but may disagree occasionally where the data is open to interpretation or when more ideological considerations come into play. 3. Near the end of the article...
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...International business comprises all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundaries. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons.[1] It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc 1. The exchange of goods and services among individuals and businesses in multiple countries. 2. A specific entity, such as a multinational corporation or international business company that engages in business among multiple countries. Export policies Bangladesh’s exports are dominated by ready made garments, most of which are exported to the US and the EU. Nearly all garment exports are from firms operating in export processing zones or as bonded warehouses. In both cases they can import their textile and other inputs free of Customs duties and all other import taxes (including the 3% advance income tax) with the use of “back-to-back LCs” i.e. letters of credit based on LCs issued for their exports. As noted previously, machinery used by exporters is also exempt from all import taxes...
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...chocolate from the West African countries like the Ivory Coast where the cocoa trade is being used to fund conflict to the tune of £60 million a year. The Ivory Coast provides some 40% of the world’s cocoa, since 2002 it has been torn apart by civil war. The allegations are that the profit from cocoa has been directly siphoned into government funds and used to finance their conflict with the rebels. In addition the rebels extorted money directly from the industry trying to transport the cocoa through its region. Gentle pressure is being applied on Mars to identify how much of its product contains cocoa from the Ivory Coast and strive to become free from “Conflict Cocoa”. (Independent News and Media Ltd 2007) Sustainability and fair trade with regard to cocoa has become a political “hot potato” with the manufacturers of the Mars bar being criticised for employing tactics that puts cocoa farmers into virtual slavery, forcing them to turn more of their land over to production of cocoa rather than traditional arable farming and then making entire communities reliant on the cocoa market. The power of the global conglomerate can then manipulate the price of cocoa, ultimately depriving the producer of a fair price for the raw ingredient. The close association of the Mars bar as a product of the United States may cause some with a dislike of all things American to boycott the product; however there does not seem to be any evidence that this has actually occurred. Due to the global use...
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...economic agreements. • Understand the implications for business that are inherent in regional economic integrations agreements. This chapter discusses regional economic integration, agreements among countries within a geographic region to achieve economic gains from the free flow of trade and investment among themselves. There are five levels of economic integration. In order of increasing integration, they include free trade area, customs union, common market, economic union, and full political union. Integration is not easily achieved or sustained. Although integration brings benefits to the majority, it is never without costs for the minority. Concerns over sovereignty often slow or stop integration attempts. The creation of single markets in the EU and North America means that many markets that were formerly protected from foreign competition are now more open. This creates major investment and export opportunities for firms within and outside these regions. The free movement of goods across borders, the harmonization of product standards, and the simplification of tax regimes make it possible for firms based in a free trade area to realize potentially enormous cost economies by centralizing production in those locations within the area where the mix of factor costs and skills is optimal. OUTLINE OF CHAPTER 8: REGIONAL ECONOMIC INTEGRATION Opening Case: The European Energy...
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...Economy of International Trade Learning objectives • Describe the policy instruments used by governments to influence international trade flows. • Understand why governments sometimes intervene in international trade. • Articulate the arguments against strategic trade policy. • Describe the developments of the world trading system and the current trade issues. • Explain the implications for managers of developments in the world trading system. This chapter focuses on the political systems and tools of trade policy. The major objective of this chapter is to describe how political realities shape the international trading system. With an introduction to tariffs, subsidies, and the development of the world trading system, the chapter describes the evolution of the World Trade Organization and its impact on the global business environment. While in theory many countries adhere to the free trade ideal outlined in Chapter 5, in practice most have been reluctant to engage in unrestricted free trade. The US continues to restrict trade in technological and militarily sensitive products as well as in textiles, sugar, and other basic products in response to domestic political pressures. OUTLINE OF CHAPTER 6: THE POLITICAL ECONOMY OF INTERNATIONAL TRADE Opening Case: United States Cotton Subsidies and World Trade Introduction Instruments of Trade Policy Tariffs ...
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...text; its international experience has been limited to responding to occasional, unsolicited orders from foreign customers. Secondly, BFF has to solve many export sector problems. Like Austrade believes meat, cereal, sugar, dairy commodities, and marine products have the most potential for food processing. And Barrett sells macadamia nuts, cereal bars, garlic, ginger, dried fruits and honey. Europe also has many differences in national tastes, and market structures. Nevertheless E.U has an open market following many similar regulations. While Australians love Vegemite-a brown, salty breakfast spread made from yeast. Out of its boreder it enjoys little popularity 2. Why did Barrett choose exporting as its entry strategy for Europe, as opposed to foreign direct investment or licensing? What advantages does exporting provide to Barrett? What are the potential drawbacks of exporting for Barrett? Barrett chose the exportation instead of direct investment and licensing because there are several Australian brands already in place in the EU market. BFF sells nuts, cereal bars, garlic, ginger, dried fruits, and honey. All these products come from Australia, and for the European´s, Australia is perceived as an exotic & pollution-free as well as a producer of quality products. It is an advantage for Barrett. A kind of quality label, which can bear “Australian made”, which can improve their sales. Nonetheless these products can benefit from a...
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...chapter 1 Marketing’s Role in the Global Economy When You Finish This Chapter, You Should 1. Know what marketing is and why you should learn about it. 2. Understand the difference between micro-marketing and macro-marketing. 3. Know why and how macromarketing systems develop. 4. Understand why marketing is crucial to economic development and our global economy. 5. Know why marketing special— ists—including middlemen and — facilitators—develop. 6. Know the marketing functions and who performs them. 7. Understand the important new terms (shown in red). www.mhhe. When it’s time to roll out of bed in the morning, does your General Electric alarm wake you with a buzzer—or by playing your favorite radio station? Is the station playing rock, classical, or country music—or perhaps a Red Cross ad asking you to contribute blood? Will you slip into your Levi’s jeans, your shirt from L. L. Bean, and your Reeboks, or does the day call for your Brooks Brothers interviewing suit? Will breakfast be Lender’s Bagels with cream cheese or Kellogg’s Frosted Flakes—made with grain from America’s heartland—or some extra large eggs and Oscar Mayer bacon cooked in a Panasonic microwave oven imported from Japan? Will you drink decaffeinated Maxwell House coffee—grown in Colombia—or some Tang instant juice? Will you eat at home or is this a day to meet a friend at the Marriott-run cafeteria—where you’ll pay someone else to serve your breakfast? After breakfast, will you head off to school...
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...available, all but one of the top twenty countries that consume chocolate are considered 'well-developed' or 'advanced'. Brazil is the only country involved on the list that actually considers chocolate to be a natural resource. The reality exists that the processing and consumption of chocolate products is Western World dominated. 70% of the worldwide profit from chocolate sales is concentrated in these countries. 80% of the world chocolate market is accounted for by just six transnational companies, including Nestle, Mars and Cadbury. Europeans alone consume around 40% of the world's cocoa per year, 85% of which is imported from West Africa. There have recently been efforts to initiate a fair-trade movement, which would encourage the purchase of cocoa from developing country producers at a fair price. However, tariff escalation continues to me a major problem, which acts to drive chocolate comsumers and cocoa exporters further apart. Quick Chocolate Facts -16 of the top 20 consuming countries are European -in 2001 Americans consumed 3 billion pounds of chocolate, which totalled $13.1 Billion in sales -in 2001 the sale of all other non-chocolate candy items combined was $7.6 Billion -66% of chocolate is consumed between meals -chocolate is North America's favourite flavour: 52% of adults surveyed like chocolate best with vanilla and fruit flavoured coming a distant second (12%) -chocolate...
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