Particularly vulnerable groups were the old, who had no means of acquiring money. The young, were dependant on their parents’ financial status and good will, if they were not orphans. Seasonal workers were vulnerable due to the cyclical nature of their employment. Anyone who suffered from illness either long or short term fell into poverty because there were no sickness benefits. Women were another vulnerable group because they were always paid at a lower rate than men.
Not enough money and too much stress lowers the quality of life that people have, and their standards of living also drop, as they are forced to get by with cheap, low-quality items (Nickels, McHugh & McHugh, 2010). Walmart has changed how the retailer and the manufacturer negotiate prices. The manufacturer used to be the one to tell the retailer, "I can make this for you for this much." But Walmart has become so big, so important, that now they
However, due to the fact that the Hispanics only worked during harvest, they did not earn enough money to live comfortably. And when they did work they were paid extremely low wages. A Hispanic worker would only earn around $1,378 a year and thus would have to live in terrible accommodation such as low quality rented flats or in some cases makeshift tents of cars. Many Californians believed that the Hispanic workers were poor because they were lazy; this therefore led to them getting very little to no help at all. Therefore, the Hispanic workers were forced to set up organisations and campaign for their economic rights.
Another strategy that could be used to narrow the development gap is trade. I personally don’t believe that trade can bridge the development gap. This is due to things such as exploitation. MEDC’s may pay LEDC’s low prices for their resources, which leads to low wages for their workers. For example Brazil who produce a large amount of coffee, may not be paid a fair amount by MEDC’s.
Our education system has not improved with the times. The world has caught up and the US has yet to realize that long-term investment in schools and teachers is the best pay off for a worker and the country. Now the jobs are left with are the upper class people who are "symbolic analysts" using "mathematical algorithms, legal arguments, financial gimmicks, scientific principals, psychological insights," and other tools that usually come with a college or graduate degree. Then we have our lower-class comprised of low-level service jobs like waitressing, house-cleaning, security guards etc. Decreased social mobility is hard on the lower class because without being able to move forward, they are stuck in a cycle of poverty.
However, in Oxfam's point of view, Starbucks should aid the poor, and they should not treat this as an excuse. 3.2 Argument between Ethiopia Government and Starbucks Ethiopia is the most poor country in the world. The Ethiopia Government attempts to support Ethiopia farmers to apply trademark. If the farmers can acquire the right of trademark, it will help poor farmer to earn more money (Melvin, 2012). On the other side, Starbucks argued that it will only increase the complicated degree of law when farmers achieved the coffee bean trademark.
INTERNATIONAL BUSINESS STARBUCKS’ INTERNATIONAL OPERATIONS Bucharest, 2013 Starbucks’ Case Study 1. Problem: Loses in revenue, difficulties in expanding on the international markets 2. Causes: - economic recession - volatile political environment -boycott of American goods and services -criticism from NGO’s -Scultz’s alleged closeness to the Jewish community and his affirmations viewed as anti-Palestinian -lower store traffic in Japan(customer criticism regarding the artificial taste of the coffee) - complex joint ventures and licensed agreements, through which the company receive only a small percent from the profits 3. Effects: Positive: -developing new products based on demand in different countries -new cheaper suppliers of items Negative: - Stiff competition - declining revenue growth 4. Alternatives: * Franchise method: Advantages: - expansion in new markets low costs and risks - concentration on the development of the brand - long-term commitments Disadvantages: - less control over each store - lack of control over technology - lower revenue (the franchiser receives a royalty payment that is a percentage of the franchisee’s revenue * „Go green” products Advantages: - increase market share - new customer target (vegetarians, business people) - improve brand image Disadvantages: - losing the initial reputation - business cost may increase * CSR campaigns: Advantages : - boost brand image by promoting social and environmental friendly practices - attract new customers who may be more loyal because of shared values and beliefs - partnerships with NGO’s for philanthropic relationships Disadvantages: - loses of revenues if the customers do not react to the campaigns by buying more products.
Although the coffee business is progressing in consuming developed countries, the current fallen rock prices have been causing an immense hardship to countries where coffee is the key economic activity and the farmers who produce it. Coffee prices have been at historically low
Corruption, school-dropouts, and alcoholism are to blame for most of the poor. The land the Native-Americans live on is hard to harvest; therefore farming for food and vegetables can be hard. Property rights on the reservation tend to be non-existent, and weaken prosperity for this culture. Most of lands that Native-Americans live are communally, no one is able to get a clear title to his or her land, making is hard to borrow money or establish credit for improvements or investments they will benefit families. This is called tragedy of the commons, when everyone owns the land no one really owns the land which results in rundown housing due to lack of investments on the property or housing.
The major Fair Trade failures are associated with the lack of laws and regulatory entities with authority to complete a market chain that permits that the final profit could be redistributed to producing countries. This paper also uses the Fair Trade coffee as a variable that explains the real situation of Fair Trade products. Fair Trade is a valuable system that plays an important role in the battle against poverty, but if it is not well regulated then it can become a double-edged sword, facilitator of events of corruption and poverty strengthening. Keywords: Fair Trade, Poverty, Path-Goal Theory, Fair Trade Poverty FAIR TRADE, A RESOURCE AGAINST