Globalization case study 1 and 2 ( coffee trade in brazil and aid )

Question 1

Introduction ( coffee industry in Brazil) - 4 stats

Answer 1

The cofee industry is one of the most important industries in Bazil. It employs around 5 million people and is responsible more than 3% of teh country’s GDP. Brazil is the world’s largest producer of cofffee, with a production of more than 2.5 million tons per year. Coffee exports from barzil are worth around $5 million dollars per year.

Question 2

Is fair trade really helping ? ( prices and salaires)

Answer 2

A report by London’s Financial Times late last year found laborers at a number of Brazilian fair-trade certified coffee planation’s were not even being paid the country’s minimum wage, despite being certified by FLO. And there is the fact that farmers who are not part of the fair-trade system but who produce high-quality, organic beans may charge more than $1.41 per pound - the fair-trade floor price for organic beans. This means going with fair-trade rather than other gourmet roasts do not necessarily ensure a better return for coffee farmers.

Question 3

Starbucks

Answer 3

Starbucks claims to be a good corporate citizen, and yet only 3.7 percent of its coffee is fair-trade

Starbucks shelled out an average of $1.20 per pound of coffee in 2004, lower than the $1.26 floor price for fair-trade, but twice as much as the international average

Question 4

Rio - draught due to coffe

Answer 4

For example, Rio de Janeiro city faced severe water crises due to the coffee-driven removal of natural vegetation throughout the 19th century.

Question 5

Agroflorestal

Answer 5

Agroflorestal is spread across 50 hectares and hosts diverse trees with high ecological and commercial values, such as mahogany, acai-berry, Brazilian nut, andiroba, and copaiba. The coffee beans are cultivated in the shadow of these species, following agroecological procedures. This means chemical (harmful) fertilizers and pesticides are not utilized.

Question 6

2000’s

Answer 6

In early 2000s however, very low prices of coffee created a serious problem for farmers: prices fell below the cost of production and there was little incentive for farmers to carry on, invest in farms and the quality of the product.

Question 7

What is practical aid

Answer 7

Practical Action is a charity which helps communities to learn the skills they need to build better quality housing using their own labour, local resources and traditional techniques.

Question 8

What is the issue ( mehwtcities ) homes

Answer 8

Homeless people in LEDCs often build makeshift shelters in shanty towns. These are often built on land not fit for development such as steep slopes or marshland which is vulnerable to floods and landslides.