Reflect on what you learned this week about global business and trade, in the context of...

Reflect on what you learned this week about global business and trade, in the context of coffee industry. Consider these questions:

How much does coffee industry rely on global markets for its success?
What are the advantages and disadvantages for coffee industry to be a part the global business environment?

Expert Solution

Answer- Coffee is the second most sought-after commodity in the entire world and one of the favorite beverages in the entire world. It is the major source of caffeine for majority of the population and an integral part of people's day-to-day life across the globe. Coffee industry is worth over $100 billion and is valued at $20 billion in terms of exporting alone. Thus, this industry relies heavily on global market. It is now continuosly growing at a significantly large compound annual growth rate of 5.5% with over 500 billion cups of coffee consumed worldwide every year. The major reason the coffee market is expanding is due to the increasing demand from millennials as their consumption has been continuosly increasing along with a rise in urbanization across the globe. Also the demand for quick, quality product has inflated the demand for coffee leaving ample room for increase in returns and profit of the industry worldwide.

Advantages-It strengthened the financial conditions of small coffee bean growers in small countries across the world. Due to global demand, they recieved fair prices for their beans which is same as the what big corporate coffee farm recieves. This improved the overall economic condition of all the coffee growers villages. Coffee forest is also sustainable for the environment and habitat for wildlife and soil support.

Disadvantages-The major disadvantage of coffee industry is that coffee depends on weather conditions and a dry growing season is a big factor taht creates unstability in the coffee market.

Rahul Sunny answered 1 year ago

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