The Effects of Changes in Tea Prices on the Economies of the Countries Concerned

The tea market is affected by price unpredictability and it is influenced by a number of factors both internal as well as external to the market. The tea manufacturing in India employs approximately 10 million persons. The revenue obtained from the production and trade of tea has a direct influence on the gross domestic product of major tea producing countries. The two medium-largest producing countries, India and China generate prodigious revenues that influence the amount of financial resources available to memory board the political sciences macroeconomic policy and strategic development plans. The revenue derived from the sale of tea directly influence the GDP of tea producing countries such as India and China, this revenue is used by brasss to fund various social and public service initiatives in which the inbuilt population of the respective country would benefit and not inescapably only tea workers As tea prices increase wage in producing companies increase. This will lead to increase investments in the industry thereby employing more people. Greater employment results in increased income of the total population hence increasing national income. The investments make by producers to increase output to enjoy the high commodity prices will increase national output.

On the down side, as prices fall it becomes difficult for small producers are likely to go out of business due to profits being slight than operating cost. The larger producers will cut its production in an effort to reduce supply, hence lower labor book of account required. Ultimately jobs will be lost and given the large number of persons employed will have a world-shaking impact on the country ranging from high unemployment levels to reduced government revenues. Using the concepts of competition and market power, explain whether a jump off in tea prices in the shops will necessarily immoral a rise in the price for tea growers and in the wages of workers in the tea industry. The two major players in the Indian tea market are Hindustan Unilever and... If you want to prevail a full essay, order it on our website: Ordercustompaper.com

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