Commodity Trade Questions Essay Example | Topics and Well Written Essays - 1500 words - 1

Commodity Trade Questions - Essay Exampletions. Question two-International drinking deep brown trade Types of burnt umber merchandise Cocoa produced in tropical or semitropical areas. Such climates found in Asia, Africa, and Latin America who form the principal producers of drinking chocolate. The types of cocoa production are small-scale or large-scale production. An estimated 70% of world cocoa production comes from small-scale farmers. The number of small-scale farmers estimated to be 2.5 million with a take over of about 350kg per hectare. In this case, every farmer owns around 3 hectares (Interfax, 2011). Only 30% of cocoa production comes from large-scale farming. The leading countries in cocoa are West African countries as Ghana, Cote DIvoire, and Indonesia, forming 70% of the total coffee production. The other 30% collectively come from Asia, Latin America, Nigeria, Brazil, Cameroon, Malaysia, and Ecuador. By-products of cocoa The principal spin-off of cocoa is chocol ate. However, cocoa is processed to produce many other products such as Bergenfield cocoa powders, Bergenfield coffee cacao nibs, cafiesa cocoa products, chocolate covertures, dried fruit, edible nuts, and seed flour. Other products include organic cocoa products such as spices, extracts and emulsifiers, sugars, stevia, and sweeteners. Some toppings, sauces, drops, snacks, and cold pickings are by-products of cocoa. Consumption patterns Demand level determines utilization pattern, and the volume of cocoa processed each year judges the demand. Two-thirds of all cocoa, ground in the chocolate consuming countries, where, the US is the worlds largest consumer of chocolate. The consumption level followed decreasingly by Germany, United Kingdom, and France, Russian Federation, lacquer and Brazil. International transportation and trade on the markets. The Cocoa Producers Alliance (CPA) eliminates international transportation of 10% of the cocoa production due to low-grade cocoa. Markets have agreed to destroy non-quality cocoa. This is made possible by introducing levies on farmers and exporters to finance the destruction plan and compensate growers for their losses. Only quality cocoa products transported internationally and traded. Question three- normal clauses Odd day clause- A clause that states that any month containing an odd number of days, the middle day recognized as belonging to both halves of the month. Arbitration clause- Any misunderstanding arising out of the contract referred to coquette of arbitration in London, or elsewhere (as agreed) in accordance to the rules of arbitration (Interfax, 2011). The appeal of the trade organizations takes mental picture at the date of the contract and of which both parties deemed to be cognizant. International conventions clause- it is a clause holding guide rules The uniform law on sales and the uniform law on formation given by the uniform law on international sales act, shall not apply to the contract. The U nited Nations convention on contracts for the international sale of goods of 1980 shall not apply in the contract. The United Nations convention on the limitation compass point in the international