MULTINATIONALS CASE STUDY (2016)

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Universidad Universidad Rey Juan Carlos (URJC)
Grado International Relations - 2º curso
Asignatura MULTINATIONAL COMPANIES AND INTERNATIONAL BUSINESS
Año del apunte 2016
Páginas 1
Fecha de subida 15/04/2016
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apuntes de clase de Marco

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ANDREA LARA ROMERO Thursday, February 11, 2016 Colombia Coffee: Adapting to an Ever Changing Global Market.
Ethiopia was the first country to use coffee beans. The prince of a cup of coffee as a commodity is lower than 5 cents.
1. Yes, I could have been ready highering the production and opening to other markets, since globalization is a reality since decades ago. Nowadays, it is one of the most advanced Latin American countries, in terms of GDP- However, the status of the infrastructures, roads and highways is una mierda. This increases the cost of production and th difficulty of distribution.
2. It affected to their market negatively, the production costs of a coffee bean became more expensive than the best price farmers could get on the international market. The cost of production was higher than the benefits they would get by exporting in the international market. This is because globalization and free markets have dropped the prices due to the increase in competition.
3. I do think it is a good solution to open to new markets. Subsidies from the government makes the final prices increase. On the other hand, the FNC solution of the expansion plan for Juan Valdez does have positive effects to open to new markets and alternatives.
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