Coffee – a Global Commodity

Coffee a Global Commodity John Bellusci May 29, 2011 Abstract What is a trade good? A commodity is a basic commodity employ in commerce that is inter transfigureable with early(a) commodities of the comparable type. Commodities are used as inputs in the production of other goods or services. There are different commodities that are used such as sugar, gas,oil,wheat,diamonds, gold, corn, copper, silk and coffee. Coffee has a long autobiography of operating within a market economy since the 1800s (Unknown, 2011). Coffee a Global Commodity Coffee is not however a drink. Its a global commodity. As one of the beings most traded products-second in value only to oil-the coffee persistence employs millions of people around the world through its growing, processing and trading. but while the coffee trade is vital to the politics, survival and economies of many an(prenominal) developing nations, the industrys pricing and futures are decided in conference rooms and on stock exchange floors in some of the worlds wealthiest cities. (Maskela, 2007) Coffee has been a valuable traded commodity since the 1800s. In 1963 a trade organization was established called, the outside(a) Coffee Organization (ICO). It has operated on a lower floor the International Coffee Agreements negotiated under the authority of the United Nations.

These agreements were an effort to control coffee come out and prices. From the 1963 to 1989, they stabilized the market and prevented declines in prices as they limited excess supplies using a quota system and implemented price controls. The ICO created selling tools and campaigns to promote an increase in coffee consumption globally. The agreements that were negotiated by ICO helped to strengthen the economies of coffee-producing countries in Africa and in Latin America.Mohan, S. (January 2007).  [pic] When demand or supply changes, there should be a corresponding change in price. As demand increase but production remains flat, prices should go up. Likewise when... If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper