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Denationalization of Coffee

Understanding that denationalization is the process of national boundaries becoming less relevant; research a real product, and explain how it is a product of denationalization, whereby markets are global and cutting across country borders, including the following:

How marketing costs are lower and show new market opportunities were created
How it helped income all year round, benefited the local market, and reduced expenses
How it used local technology and the effect it had on other production inputs
Be sure to also include a response to the following questions:

Did the product change jobs and wages domestically or internationally?
Did it affect the environment domestically or internationally?
Is denationalization of the supply chain better or worse for the global economy?

Solution Preview

Coffee is selected as product of denationalization, because it has excess of demand in global markets. The availability of production opportunity in country and globalization of economies has paved the need of denationalization of coffee.
Impact on Marketing Cost and Marketing Opportunities
With the help of denationalization program, government reduces export taxation of cocoa and coffee and reduces its intervention in the sector. Main concern behind denationalization of coffee is the elimination of taxes charged by government to make product available at competitive market prices. Further, it removes a series of non-tariff barriers to reduce overall costs of coffee (Zurn & Walter, 2012). This way, it improves efficiency and transparency of marketing activities by reducing government influence. With reduction in tariffs and government taxation on export and local business of coffee, companies of the nation get more opportunities to sale and market their products in local and international markets.
Impact on Income and Expenses and on Local Markets
Denationalization of coffee helped local coffee manufacturing companies to enhance their revenue by enhancing revenue in other regions through liberalization of trade. By having less government access over the price of products, the companies set their products at reasonable rate with differentiation, which increased revenue for them. Denationalization of coffee increased the availability of products at ...

Solution Summary

This response provides guidelines and references for the process of denationalization selecting Coffee as a product. This includes discussing about how marketing costs are lower and show new market opportunities were created; how it helped income all year round, benefited the local market, and reduced expenses etc. Also, it is discussed whether denationalization of the supply chain is better or worse for the global economy.

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