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Economic impact - Research Paper Example

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Coffee is regarded to be an important and favourite beverage globally, especially after the commodity has consistently exhibited a downward price trend since the late 1990s. It is more popular in regions featured by high industrial growth unlike in agro-based economies where tea…
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Economic impact
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Economic impact

Download file to see previous pages... of one such nation where demand for coffee has reached an epitome so much so that it accounts for being one of the largest consumers of the commodity in the world. Annual consumption of the good is near to 4.5 kilograms per capita in USA, clearly indicating the degree of popularity that coffee has attained among Americans. Despite the downfall in the income growth rate of the nation, the nationals continue to spend an average of $165 per year on coffee with 54% of them consuming it on a regular basis (International Coffee Organisation, 2006).
The present paper is a case study on how a push cart selling hot coffee and cappuccino in the industrial belts of Cleveland, Ohio and Houston, Texas will fare in its business. Objective of the paper will be to draw a conclusion about the prospects of the business in either location on the basis of the degree of demand and the economic influence it will impose.
Production of coffee in USA is concentrated only within the states of Hawaii and Papua, though the nation imports a lumpsum quantity of coffee from Latin American nations, whose tropical climate are suited for its growth. In fact, as far as the data of 2001 is concerned, USA is the largest importer of coffee beans accounting for more than 25% of gross imports of the product. However in terms of production, USA produces only a fraction compared to its huge demand for coffee. Hence, a majority of the coffee being supplied in various parts of the nation comes from its imports from South American economies of Colombia and Brazil (International Coffee Organisation, 2006).
Demand for coffee depends upon a number of factors which tend to vary from place to place, leading to diverse outcomes of business ventures. In Ohio for instance, these factors could be elaborated as follows.
Population – According to census conducted by US Census Bureau in 2008, Cleveland comprised of 397,901 people out of whom 47.8% were males and the rest of them being females. This statistic is ...Download file to see next pagesRead More
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