Economic Advantages And Disadvantages Of Cereals

Everyday, more than eighty million Americans have some type of cereal for breakfast. Cereal is one of the most popular breakfast foods and some brand is found in almost every home in America (Topher). This vast industry stems from the late 1800s when John Harvey Kellogg and C. W. Post began cereal production in Battle Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery store shelves. However, only a few select companies make every one of those different kinds of cereal.

The cereal market is a booming industry. It has been around for over one hundred years and continues to attract millions of customers’ everyday. The market structure of the cereal industry is an Oligopoly. This is because there are four large firms, Kellogg, General Mills, Post, and Quaker Oats, which dominate the industry.

Many areas in the world are unable to grow crops at all. (Source F ) Most will be unable to provide more than 2-3 viable food options. The way we circumvent this is by buying these items from other areas. The fact of the matter is there is no such thing as “locally grown” coconuts in Texas. There is no “farm to table” products in the Sahara. (Source E) It’s a practice which is unfortunately impractical in a large part of the world.

In a non-drought year, close to 75% of Australian crop and livestock production are exported. Though recent droughts have seen a reduction in dryland farming production and water allocation to irrigated agriculture, resulting in a decline of agricultural production and exports. Australia’s contribution to the total global food supply is relatively small, although its contribution to international trade in wheat, meat and dairy products is substantial enough to affect global food prices.

The dominance of the market-economy worldwide, along with the subsequent rise of the Green Revolution, eventually led to the mass-shipment and globalization of food. In today’s interconnected society, the third- world produces for consumers within western Europe and the United States.(Guptill, Food Access) This market-driven desire to indulge in out-of-season crops fuels demand towards an industrial agricultural system that focuses on cash-crop monoculture (Guptill et al.,Global Food, 125-130).

Trade policies are developed by foreign and domestic governments in an effort to influence net imports or net exports (Cengage, 2009). Two common policies are the use of tariffs and import quotas. As XYZ expands into Asia, Mexico and Canada it will want to factor the costs of tariffs and the possible effects of the limitations of import quotas. What is interesting is that the basic premises of supply and demand, imports and exports, equilibriums and trade balances are all meant to lead to an efficient market place (Cengage, 2009). Tariffs, wage restrictions, quotas and other such policies can create inefficient markets. So XYZ will have to take the basic study of economics and then apply the effects of various trade policies and restrictions. Another factor of government that influences the

According to the line graph, at the start, wheat exports amount in all categories were between 15 - 20 million tons, then amount of exported wheat in Australia was stable increasing while Canada and Europe countries were gradual dropping until 1986. After that, the change of amount in Canada significantly went up and reached 25 million tons in 1988 while Europe Community slightly grew and remained in 15 million ton at 1988, for Australia, in contrast, it declined average the same amount every year.

The U.S. has always been an importer of commodities that cannot be cultivated here such as bananas, mangos, cocoa and coffee. However, the U.S. has begun to import products that Americans are used to growing themselves. According to Phillip Abbot, a professor of agricultural economics at Purdue University, “the problem is that other nations have successfully grabbed the markets U.S. farmers were counting on. Exports of the U.S. 's biggest commodities such as corn, soybeans and wheat have been flat for a decade as other nations boost production. At the same time, imports of pricier items like fruits, vegetables, processed foods and some meats are surging. The largest challenge for American farmers is that agricultural products can be

Since the year 1970, U.S has been considered a large grain producer in the world. Doing so, it has created many opportunities for the farm corporation to devote and broaden their operations as the leading exporter of the world. The U.S. continues to be a leading player worldwide in exporting soybeans and corn. Causing a chain reaction with the climate change, and high fuel prices have caused a spike in the crops prices. As a response, we have seen a large cutback in the U.S. international market shares of soybeans and corn. As we grow stronger rivals in the markets with the higher U.S. dollar relative have led to the major loss of U.S. corn and soybean market shares.

for fruit and vegetable import (Expert 2). This claim is consistent with the findings of Altieri (2005).

Over the years, the World Trade Organization (WTO) has prided itself as the central element in the international economic management system across the world. This system incorporates other international bodies such as the World Bank, the International Monetary Fund as well as a series of other regional trade regimes that are growing. Collectively, these structures provide a mechanism that addresses international economic interdependence as well enhancing economic interactions that offer the promise of maximizing social welfare across the globe. These aspects have been brought about due to the focus given in the post-Cold War era where international relations have evolved beyond a narrow emphasis on politico-military affairs.

2). However, they differ from Brown’s (1995, 1996) arguments in that they contend that it is food safety that we should be concerned about, as opposed to food supply (pg. 5). They also highlight the fact that China’s per person production of cereals has heightened to the global average, due to breeding programs and hybrid forms of food being produced (pg. 3). This proves that supply is not necessarily the issue, but rather technology, policy reforms and environmental protection could be the solution to China’s food

When looking at supply side of RTE cereal industry major costs to producers constitute of initial investment in production plant. Flexible manufacturing plants resulted in a rather high supply-side substitutability between different cereals. This implies that RTE cereal producers operate in a broader cereal industry as opposed to one for only a specific type, such as puffed or shredded wheat cereals.

In 2002, a dispute over agricultural trade liberalization between the United States and Brazil arose. Brazil filed a lawsuit against the United Stated in the World Trade Organization Dispute (WTO) Settlement System arguing that the subsidies the United States provided to US farmers violated WTO trade agreements and gave US farmers unfair advantages (Unit 7, lesson 5). Fortunately for Brazil, the World Trade Organization agreed with their claim and authorized them to take “punitive measures against the United States” (Cengage unit 7, 3).  As a result of that authorization, Brazil decided “to impose tariffs and lift patent protections on US goods” (Cengage unit 7, 3). In order to limit the damage that could have been created by Brazil’s actions, the United States had to make a smart move. As a matter of fact, they decided to provide cottons to Brazilians rather than removing the subsidies. Over 150 Million in subsidies have been provided to the Brazilians, in 2010 so that Brazil do not impose punitive measures (Cengage unit 7, 3). There exists both, pros and cons for subsidizing U.S. farmers. In fact, US farmer strongly support subsidies claiming that it gives the US an important industry and helps the regulations. However, subsidizing US farmers has some consequences. The cons argue that “subsidies provided to US agricultural producers create inefficiency in the global economy” (unit 7). Also, according to economists, subsidizing stands in the way of the economy growth

In light of this, I would like to explore research frontiers in the area of the challenges of managing food and farm businesses in a global setting of the 21st Century. In our society beleaguered by agricultural problems that ranges from economic to environmental problems such as weather and global warming, issues concerning trade and management of agricultural enterprises has been the topic of debate for the past decade. Many developing/poor countries who earn their living from agriculture continuously suffer from poverty and hunger as a result of the increasing pressures on the world's resource base. Policymakers are gripped with finding solutions to problems such as structural and technological constraints, inappropriate domestic policies and an unfavourable external economic environment. As a result, the growth of these economies has been slow, undernourishment has been increasing and the marginalization of these countries in the global economy has continued. This trend has created problems for developing countries over the past decade. Economic and financial