Got a tricky question? Receive an answer from students like you! Try us!

International Finance (The problem with Fair Trade Coffee) - Essay Example

Only on StudentShare
Author : shanahanlafayet

Summary

Why Do Successful Economic Justice Models Sometimes Lose Their Power? Reasons for Losing of Power of Successful Economic Justice Models The reasons for losing power of successful economic justice models are many and the research paper is aimed towards identifying those reasons taking example of the Fair Trade Coffee case…

Extract of sample
International Finance (The problem with Fair Trade Coffee)

Are the advantages liable to encompass a high mass of growers and communities on a worldwide basis? The assignment of deriving answers to these questions is although a long term task, there is also necessity of accomplishing this assignment as soon as possible. Considering the urgency, this paper has been prepared and presented as a move towards finding answers to the above mentioned questions. The barriers to the effective implementation of the fair trade movements all the time act as the reason of the power loss of the entire system. Considering in-depth review of the case of fair trade coffee, it has been observed that the biggest challenge being faced by the fair trade movement is when it does not allow the grower co-operatives to negotiate prices for coffee with the importers from foreign countries when at the same time, the world prices are at high level. The consequence of the situation is that the co-operatives ultimately have to buy coffee at higher prices from the farmers and they are bound to sell the same coffee at lower prices to the importers of the foreign countries (Jeff, 2011). Another major challenge of the fair trade movement as identified from the Fair Trade coffee case is that of the lack of knowledge being preserved by the producers of coffee. ...
Download paper

Related Essays

International Finance: the case of Lorient Enterprises
This study has tried to analyze the hedging requirement of Lorient Enterprise, based in France that is engaged in transactions with U.S. based company Washington Technical Inc. The company has payables to be made within three months and expects that EUR would depreciate against USD. The currency forward contract compared to currency futures has been identified to be a suitable hedge for the company because its payment date is not aligned with the maturity of the futures contract and the forward contract can be tailor-made according to the company’s requirements. However it has been found…
8 pages (2008 words)
International Finance
There are mainly three types of foreign exchange risks or exposures.This is also known as accounting risk, which a firm faces when it has subsidiary operations in other countries. When the foreign exchange movements adversely affect the translated values of assets and liabilities of the subsidiaries, it becomes an unwanted exposure for the parent company’s consolidated financial statements. This risk can be hedged by using currency futures, currency swaps etc.Transaction Exposure: This exposure is related to the future payments and receipts in foreign currency. Companies many a times limit…
5 pages (1255 words)
International finance
Engaging in International trade is important for the economies of the two or more countries involved; because there is an exchange of foreign currencies, creation of jobs and enhancement of revenues through taxation of the business profits. For multi-national organizations to survive in this import and export trade, they have to employ financial tools in their assessments, and this includes financial agreements and use of security exchanges. A product of trade in international finance varies depending on locations, legal requirements of operating in such destinations and transaction…
7 pages (1757 words)
Finance: Fair value accounting during the financial crisis
The impact of the overall situation of financial crisis had a severe reaction on the social institutions as well, leading unemployment rate to increase since a large number of finnacinal institutions had to face failures and ultimately, bankruptcy. As a result, a number of debates have been observed between investigators that the credit crunch was due to the misinterpretation of assets and hedging strategies in the shape of subprime loans and mortgage backed securities (Deff and Phelps). The major concern of the debaters was the implication of fair value accounting systems which led to the…
22 pages (5522 words)
Perspectives on International Trade and Finance
Joining WTO posed a vital influence on the political as well as economic reforms of China which were learnt to be influencing the telecom sector as well. Xiaolingtong is a mobile network which was developed in the year 1999, before China joined WTO and was controlled by the Ministry of Information Industry (MII) which was considered to be the backbone of the fixed line service providers. Later on, significant developments were made with regard to Xiaolingtong which assisted in capturing a significant share in the foreign market. The government provided full support towards the development of…
9 pages (2259 words)
Perspective on International Trade and Finance
This paper focuses on the trade disputes involving China, the impact and the determinants of foreign exchange rates, the valuation of the Chinese currency before and after the reforms. This paper also discusses the options that are available to China for reform of its exchange rate system. Introduction The level of exports by China had amplified radically from $250 billion in the year 2000 to a proposed $1,500 billion in the year 2009. This massive increase of Chinese exports severely hampered rival businesses in the developed countries, predominantly the Europe and the United States. In 2001,…
8 pages (2008 words)
Finance Problem Solving
Therefore, Amber has a net working capital of $200 and a current ratio of 1.20. This indicates that the company will be able to pay any short term obligations that arise unexpectedly due to some investment in the working capital. On the other hand, Barbie has no current assets, but has $600 worth of current liabilities. Therefore, Amber has a net working capital of negative $600 and a weak current ratio. This indicates that the company will not be able to pay any short term obligations that arise unexpectedly due to no investments in the working capital. Amber Barbie Current Assets $1,200 $0…
4 pages (1004 words)