• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss how a coffee producers cartel is in the interest of consumers

Extracts from this document...

Introduction

Harpal Chima 13A Economics & Business Studies Discuss how a coffee producers cartel is in the interest of consumers A cartel explained by economists is a method of controlling the supply and demand effect and restricting prices from continual decrease. A cartel is an unlawful association or group of manufacturers or suppliers who get together to maintain high prices and restrict competition. In its simplest terms, a cartel is an agreement between businesses not to compete with each other. The agreement is usually verbal and often informal. Typically, cartel members may agree on: * prices * output levels * discounts * credit terms * which customers they will supply * which areas they will supply Cartels are most successful in areas where there is little competition, the product has no commodities, communication channels between competitors are already established and the industry is suffering from excess capacity or there is general recession. ...read more.

Middle

Firstly by creating a cartel it will mean that the consumers will be purchasing products in order to save the livelihoods of poor Brazilian farmers. Although this can be argued that it is not in the interest of consumers it must be considered that consumers would feel better if the purchased a product that saves a farmers life for a whole month providing them food and water. Another factor contributing to the interest that cartels would provide consumers would be the fact that by creating a cartel it may mean that it will reduce supply. By reducing supply it will mean that the main problem in the coffee industry will be solved, this will mean that the consumers will help to cure the problems in a market. Also it will mean that by purchasing coffee they will be able to recognise that they are purchasing a product at a price that is reasonable and will save developing nations. ...read more.

Conclusion

Thus by giving in the producers will then continually rise the price of cocoa as the retailers will have no choice to agree and thus cause problems on a price basis for consumers. The effect of a cartel from the coffee producers on consumers may also mean that the quality of cocoa from the countries that produce high quality cocoa will decrease. This is because as the retailers give in to the demands of the coffee producers it will mean that the countries that develop high quality cocoa will see the fact that retailers will have no choice apart from buying there cocoa. Thus the producers will start to decrease their work effort, as they will notice that whatever happens they will get a continual amount of profit. As work effort decrease it will mean that the producers will care less about the cocoa and thus the quality of the beans will decrease and thus directly effect the interest of the consumers. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. Marketing Research

    An audience panel records the viewership/listening patterns (TV/RADIO). The panel records on a diary or automatically (people meter) the channels they watched in the previous week. This helps the companies in media planning. 3) Product testing Panel: before launching a product, its tested among the product testing panel.

  2. Business studies, product development

    A grown man would not want to walk around with a bright blue bag with a picture of a child's cartoon on it. Questionnaire I decided that I didn't know what the public wanted from my sports bag all I knew was what the shop assistant thought the public wanted.

  1. Applied Business Studies

    This shop name is not really appealing to me, and I don't think that it will interest my target audience. * Theatre Store - even though the name is simple, it does not really stand out with the rest of their competition.

  2. GLOBAL STEEL INDUSTRY DEVELOPMENT

    This limit has been since increased up to 100%, (d) lowering of import duty on capital goods and raw materials etc. Growth of the Indian Steel Sector after Liberalization Finished Carbon Steel The Indian steel sector was the first core sector to be completely removed from the licensing regime as well as pricing and distribution controls.

  1. Impact on Automobile Industry Due To Recession in India

    For example this definition ignores any changes in the unemployment rate or consumer confidence. Second, by using quarterly data this definition makes it difficult to pinpoint when a recession begins or ends. This means that a recession that lasts ten months or less may go undetected.

  2. SunCity - developing marketing strategy for problem

    not that the sunbeds are faulty, it is the fact that people are scared to use them because there are risks like skin cancer etc. This is affecting Sun City because they are losing many potential customers because of the reputation of the sunbeds.

  1. Consumer Decision Making Process for Purchasing Property in Spain

    RESULTS 41 4.1 CHI SQUARE TEST 41 4.2 DATA INTERPRETATION 42 4.3 SUMMARY OF KEY FINDINGS 59 5. DISCUSSION 60 5.1 PRE PURCHASE PROCESS 61 5.1.1 INFORMATION SEARCH 62 5.2 PURCHASE PROCESS 65 5.3 POST PURCHASE PROCESS 66 5.3.1 CONSUMER BEHAVIOUR MODELS 67 5.4 CONSUMER PROFILE 68 6.

  2. This is a report on the international dimension of Costa Coffee and Coffee Aroma.

    Signature Zannatul Ferdous SUMMARY I am doing a study on two international businesses, one with a global presence, Costa Coffee, and one with a European Presence, Coffee Aroma, for my Applied Business Assessment to understand the international dimensions of business.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work