Asked by Tempest Hansen on May 26, 2024

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Write an account of a global commodity chain. Use an example of a chain you participate in, other than the Nike example discussed in the textbook.

Global Commodity Chain

The global commodity chain analyzes the worldwide network of production and distribution processes through which a product passes until it reaches the consumer, highlighting the economic and social implications of globalization.

Nike Example

Illustrates a business or marketing strategy, often related to branding, innovation, or globalization, based on the practices and experiences of the Nike corporation.

  • Describe and analyze the components of a global commodity chain with a practical example.
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Mohamad MohamadiMay 27, 2024
Final Answer :
A global commodity chain refers to the network of production, distribution, and consumption of a particular product that spans multiple countries and involves various stages of production. Each stage of the chain adds value to the product, and the final product is often sold in global markets.

An example of a global commodity chain that I participate in is the coffee industry. Coffee beans are grown in countries such as Brazil, Colombia, Ethiopia, and Vietnam. After the beans are harvested, they are processed and exported to other countries for roasting and packaging. The roasted coffee is then distributed to retailers and eventually sold to consumers around the world.

As a consumer, I participate in this commodity chain by purchasing coffee from local cafes or grocery stores. The coffee I buy has likely gone through multiple stages of production and traveled across borders before reaching me. This demonstrates how interconnected and globalized the coffee industry is.

The global commodity chain of coffee involves various actors, including farmers, processors, exporters, importers, roasters, and retailers, all of whom play a role in bringing the product to consumers. This chain also highlights the unequal distribution of power and profits, as coffee farmers in developing countries often receive a small portion of the final retail price.

Overall, the global commodity chain of coffee exemplifies the complex and interconnected nature of global trade and the various stages of production and distribution involved in bringing a product to consumers around the world.