Topics: Fair trade, Supply and demand, Coffee Pages: 6 (1163 words) Published: March 31, 2013

Basics of Economics

Submitted to:

Ms. Deepa Bhaskaran

Submitted By:

Sahil Bansal

Venkat Batra

Saurabh Satija

Ravikant Gupta


Q-1 Identify target market for nano ?

Ans- The target market for nano would be

The group of people that belongs th the lower-middle class that earlier could not have thought of a car .

Higher-midle class group as well who already owe a car but want to or might be interested in buying another car but cant afford other expensive car .

The group of people who would certainly interested into having a compact car .

Q-2 What all factors should be taken in a account while identifying the demand for nano cars in malaysia ?

Ans-The factors that should be taken into account while identifying the demand for nano car in

malaysia are as follows :-

PRICE-price should be fixed according to the income level of the majority of the population in malaysia .

PLACE-which would be the preferable place to hit for profitable results .

TASTE AND PREFERANCES-considering the taste and preferences of the majorityb of the people in malaysia .

COMPETITION IN MARKET-analysing the market well to find out if there z any competition .

PREFERENCE OF PETROL OVER DIESEL OR VICE-VERSA-to check what the people over there prefer .


Ques. Can supply and demand be overruled by a suitably designed international organization, or is an organization like the International Coffee Organization doomed to failure?

Ans. Following are the reasons:

If price falls,exit should be there of existing firms

Close substitutes should be dere in case of price  increase

Improvement in technology

Fair trade

Pay and working conditions for farmers
Sustainable production

Yes initially such org will help,but eventually it will fail bcoz eventually the demand and supply will decide the price of the goods coz in case weather is bad there would be supply shortages so there will be price hike and prices decided by such organizations would not be practical.

Ques. Evaluate the NGO's proposals for improving the market. Are they workable?

Ans. A number of NGO's worked to change the global coffee market, there effort focussed on improving the pay and working condition for the coffee farmers and on decreasing the environmental impact on "technical" coffee growing, efforts to increase both economic and environmental condition were referred to as promoting sustainable coffee production. In the Fair Trade Movement, which begun in the late 1940's sought better pay and working condition for producers. A fair trade purchasing organization worked directly with a farmer cooperative society in a long term relationship to meet fair trade standards. The following criteria had to be met:

Democratic Organization
Direct create and long term relationship
Assist to credit
Environmental protection

Corporate responses to the proposal:
Starbucks purchased fair trade coffee only
Sara Lee started selling fair trade beans in the spring of 2001 as part of its Prebica line Procter and Gamble first resisted and then used fair trade coffee unit until September 2003, when it announced that it would begin selling "Mountain Moonlight" over the Internet as part of its gourmet coffees. Nestle felt that due to the high fixed cost of factories providing soluble coffee as compare with the low cost of its competitors.

Yes, its workable because this would be the first time that beans certified for providing farmers with living, wage and meeting environmental standards, would be used in regular brands, the earlier initiative by large processors had consisted by...
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