Discuss whether governments should subsidise food prices There are many positives and negatives to subsidising food prices, there are also many other ways that one can impact the price of food to make it affordable for the world population. Firstly, what is a subsidy? A subsidy is an amount of money that a government would give to a producer that leads to a decrease in price of, in this case, food. It has the aim of increasing the production of good with a positive externality. For a subsidy to be effective, the policy would depend on how much of the subsidy would be passed onto the consumers or how much would be kept by the producers.
Companies with smaller profit margins must create a larger following of loyal customers because they need to rely on the quantity of customers, not the markup, for their profits. Caffe Umbria will charge $2.00 per 16oz cup of coffee to keep it below the national average cost while not compromising quality of the product. Packaging needs to stay small for purchase in store and online for home brewers so that the customer still gets the same fresh taste at home as they do in the cafes and extra care should be taken to ensure the freshness of the coffee, safety of the packaging, and the shrink in the packaging process. The lower the costs in shrink of packaging and
They make their own prices, which would in most cases be more of a benefit to the producer. Both structures make it very difficult for others to enter the industry, limiting and sometimes blocking entry and competition. Industrial Regulation seeks to prevent unfair practices of restricting market entry, opening markets up for competition. Ideally, prices with regulate themselves in a fair competition, preventing one or a few companies from setting the prices that would be deemed as inappropriate. It also works to prevent the practices of unfair pricing and charging higher prices to consumers while the companies produce less product, limiting choices for consumers.
And the customer will assume since the other coffee maker was on sale and such a low price that this coffee maker must be a good deal as well and chances are buy it. But again looking at the prices end of this, food is cheaper at Wal-mart. You can buy the name brand name products or you can buy the greater value products which are Wal-mart's brand products for even cheaper. Wal-mart also has a convince factor, I find myself going to Wal-mart for say car speakers and I end up buy speakers, movies, and food. The fact that it is all in one building
So grocery stores in poorer neighborhoods stock less milk and more soda, and the relentless advertising from the beverage industry and fast food joints makes sweet drinks an expected part of daily living. (633) This would be especially true for the poor because they have less money to waste, and they would think twice before using money to buy foods or drinks. The lower-price drinks would be more affordable. Increasing the cost of sugary drinks will change people’s opinion and behavior because healthy choices and bad choices will become equal. People always consider the price before the product’s quality so if the prices are the same, they will certainly prefer the quality and healthy choices.
Instead, an easier alternative would be to educate people on the dangers and results of eating unhealthily as well as ensuring the process of making processed foods cost more than the healthier alternatives such as fruit and 100% juice products. The fact that lots of the unhealthy food that the population consumes simply because it is affordable, is one of the main causes for the lack of public health. Government involvement shouldn’t be necessary, but if it is, a plan should be instituted that would allow healthier options to be cheaper than the unhealthier alternatives that are more common. Also, the FDA should take a deeper look into the long lasting affects of the chemicals found in common foods such as soda
However in the long-run, this price raise is not enough to make people quit smoking so since cigarettes are a demerit good, it will have a negative effect on the environment and it will increase the number of health issues from second hand smoke, not to mention the high unemployment rate and less taxes for the government. Work Cited: BusinessDictionary.com. 2013. What is inelastic demand? definition and meaning.
Not only is this changing its economic strategy, as coffee gets more expensive to buy for the company, but it more importantly improves the image of the brand on the social stage. Indeed, this presents Starbucks as a company which is concerned with the quality of the production, which employment conditions etc. Be careful! This marketing strategy tends to be misleading: Starbucks is not a fair-trade company! Only the majority of the coffee it purchases comes from fair-trade
Companies are forced to create safer products for the public to use, and also learn to make better with fewer resources. Corporations must invent new ways to cut down on their waste and work with less to create more. Corporations work diligently to cut down their use of water and electricity and other essential needs. They have educated the public about the importance of recycling used products and keeping their environment clean. Over consumption has led to many cures and medicines being created, and has made the world a better and safer place then it once was.
Moreover, the goods from the outsourcings may not be as efficient as the goods that are made within the country. The consumers would choose the goods through the brand names or the prices; however, sometimes the consumers would choose goods by where they are made. Therefore, it is very significant to know where the goods are manufactured because it will increase the satisfaction of consumers since they are very demanding on the quality of goods. In addition, as the consumption of the goods decrease, the companies will earn less revenue that decreases the investment that they will spend for outsourcings. Thus, consumer demand has a big impact on outsourcings since people do not want to spend money on the outsourcings’ goods which make the companies earn less profits; on the other hand, the outcome will reduce the spending on