Foreign Direct Investment Or Export And Import Possibilities Essay

According to statistics, Finland is the country with the highest per capita consumption of coffee, and China is the lowest one, but in Finland there are nearly five million residents only, which means Finland will consume a million bags of coffee every year, but the 1.3 billion residents of China will provide approximately 200 million potential coffee consumers, and this will make China becomes a major coffee market. On the other hand, under the same culture background, compare to Japan and Korea, Chinese average annual per capita consumption is only around 20 Cups, but this also means Chinese consumer coffee market has a big room for future growth.

Coffee has not only impacted the world socially, but it provides financial means for many countries who export their coffee beans.

Costa Rica now provided raw material for Starbucks which accounted for about 15 percent of the total coffee beans Starbucks needed every year. Costa Rica as one of the raw material suppliers plays an important role in global value chain. Coffee has played a pivotal role in the development of Costa Rica. It has shaped social, cultural and political institutions and is still one of country’s major agricultural exports. (Anywhere, 2016) The global value chain in this coffee industry can be described that Starbucks, the centre in this coffee global value chain, purchasing raw materials (coffee beans) from coffee farms in Costa Rica, reprocessing and reproducing in retail shops, selling the finished products (various kinds of coffee) to customers in the world.

The Keurig Green Mountain Coffee Company focuses on the consumer and improving their coffee experience. Keurig has a variety of products including brewing systems and the beverages that are brewed in these systems. In my argument, I will be focusing mainly on the brewing systems alone. Keurig Company has recently began expanding their business in international markets. I will be evaluating Brazil as a possible country for growth. I will then discuss the potential success and failures of the Keurig product entering the Brazilian market. This will be followed by an argument on whether Keurig should or should not pursue expanding into Brazil.

The coffee industry is an extremely competitive one. However, the market structure of the coffee industry and specifically the coffee bean industry that provides the raw materials for Yuban could be described as an oligopoly. The specific characteristics of this oligopoly are, however, more reminiscent of a cartel because a relatively small number of suppliers control the supply and distribution of coffee beans globally (Igami, 2011). Consequently, Yuban, which is a brand within the Kraft Foods umbrella, has limited choice in selecting its supplies. The coffee bean industry was controlled officially through a cartel structure until 1989 under the International Coffee Agreement or ICA but thereafter market competition with new entrants such as Vietnam eroded the control of this official cartel organization (Igami, 2011). Yet, because coffee bean production is largely limited to certain geographic regions, these countries’ governments express a great deal of control over which entities control production and distribution.

Coffee, Tim Hortons most significant source of income, is produced in more than fifty developing countries, including Latin America, Africa, and Asia. Understanding the importance of keeping costs low, Tim Hortons has strategically chosen to develop their coffee in these regions. Keeping costs low means an increase in profitability, appealing stakeholders. However, The roasting and branding of coffee is more capital intensive, subsequently relocating that aspect of their business to northern industrialized countries ( COFFEE VALUE CHAIN & P3G ANALYSIS, n.d).

Currently, the coffee beans prepared for all locations in North and South America are processed throughout the United States of America. By opening a Roasting Facility in Toronto, ON Canada - the largest city in Canada - will assist in the future growth. By preparing for expansions it will assist in keeping costs low in the future. This occurs by building and purchasing materials and equipment in the present instead of the future when prices rise from inflation, increasing profits, and demands to list a few.

The coffee industry has proven there is a never-ending shift of global power through the global economy. Thus, through the history of coffee, it is apparent that factors involving the globalization process such as absolute advantage and comparative advantage have had an impact

The world in terms of development is divided in two, which is known as the ‘North-South divide’ this shows a separation between developed and developing countries. This separation is caused by economic, social and environmental factors, economy being the clearest and most prominent influence. For many countries in the Global South coffee is their main income, and as a result is highly important to their economy. For instance if coffee decreases in price then farmers will not earn enough surplus to keep their farms and what follows is a life of poverty. The following are the world’s top exporters in coffee (as of July 2016, in thousands 60kg bags):

Statistics show that over half of the American population consumes coffee on a daily basis. You may drink coffee hot, cold, mixed, or even in a frappuccino. Individuals are able to make coffee at home, or buy it on the go. Coffee provides people with caffeine, which ultimately gives energy for hardworking people all around the world. The main focus for this paper will cover the following topics, with coffee as the basis: causes for shifts in supply and demand, how coffee supply and demand influence price, quantity,

As discussed in earlier sections, the Rwandan government has a strong desire to reduce the reliance on foreign aid through expansion of the local economy. The lack of financial liquidity in the economy requires injections of funds to help with the major infrastructure projects required for a developed or a middle-income state. The previous section discussed how Rwanda attempts to attract investments through practicing business friendly policies, but it did not include how Rwandan officials are attempting to bring regional and global business investors physically to Rwanda. Officials within the Rwanda Development Board (RDB) such as Chief Operating Officer Serge Kamuhinda, view the importance of bringing investors to view Rwanda’s progress and the business opportunities for the investors. When asked he stated, “Each country is known for specific sector or opportunity. So we (Rwanda) need to convince investors to know who we truly are, not just our past. We have to show them how safe it is, the investment climate, which includes ease of business and tough policies against corruption. Seeing is truly believing.” Rwanda is able to attract investors two visit. The first is by President Kagame meeting with international investors often around the world and bringing them to Rwanda. The second is through major trade conferences.

Coffee has long been one of the most sought-after commodities. Spreading north from Ethiopia and Yemen, coffee first gained popularity in the Arab world as a stimulant drug that was not banned in the Quran. It arrived in Europe via the Ottoman Empire and quickly became a drug of choice not just in Europe but in the area that the European cultures colonized. Production of coffee soon spread around the world, particularly in regions colonized by the French and Spanish. As a result, it is now a global crop and one of the world`s most popular beverages. This paper will analyze the demand conditions and the supply conditions on the global coffee market at present.

In this report is aimed to analyze about international investment analysis. The country that we choose to investigating is Jamaica and in coffee industry. This assignment will examine in Macro, Micro economy, free cash flow, risks and opportunities of the country and how can we manage those risks or turn it into the opportunities. Consequently, we have to recommend this analysis to Starbucks and it is going to extend more knowledge research and explore further more information about doing business in Jamaica.

Indonesia is the world’s fourth biggest producer of coffee Indonesia produce more than 660 million kilograms of coffee beans in 2015 (Republika Online, 2016). Indonesia has a strategic geographical location for the coffee plantations because of close location to the equator and has a lot of mountainous areas that are well suited for the production of

As shown in the Figure 1, the UAE has jumped to the 11th position in 2014 against the 13th in 2013 and the 15th in 2012. The United Arab Emirates reported a $9.6 billion inflow of FDI in 2012, up from $7.7 billion the year before. (A.T. Kearney Foreign Direct Investment Confidence Index, 2014. p. 20). Besides Dubai, the foreign direct investment policies in the UAE have to be applied on the national scale and would be preferably to open more industries to the foreign investors. As matter of fact, the World Expo 2020 which will be staged in the UAE represents an opportunity to revise the foreign ownership policies in order to bring more investments in the country.