Another key concept from the article is that of global integration via consumption. As trade booms in the town of Namibia, it invariably fuels consumption in the town and Africa as a whole. Consumption choices are a means of self-expression in relation to the world and more Africans aspire towards commodities that reflect social standing and a ‘better life’. This thus creates new dependencies on the trade networks to fulfill these desires. Scotch Whisky Trade The whisky trade is centrally organized, with production mainly based in Europe and distribution globally through exclusive representatives.
Whisky remains as one of the most important good traded from Europe to Africa even in the post-colonial era and the wholesale traders mainly come from families of European background organized along ethnic lines and historical ties, thus the industry is monopolistic in nature. Being a lucrative business with high market transparency (due to standardized goods with consistent quality) and thus highly elastic demand for individual traders, there is high incentive for customer retention.
Brazilian furniture trade The Brazilian furniture trade exemplifies a shifting of trade relations towards emerging economies, and the key players are Lebanese and Portuguese traders. These traders import direct from Brazilian producers, and the commodities are mostly demanded by Angola’s growing middle class whose preferences are not by brand name or utility, but by design as furniture is seen as a status symbol of hedonistic consumption.
The Term Paper on The Advandtage and Disadvantage of International Trade
International trade is important to a country with another country. It refers to a country’s economic, social and political. International trade is the economic interactions between different nations in the exchange of goods and services by importing and exporting. Why do modern countries trade with one another? There are some reasons that countries involve in international trading. For example, ...
Success is dependent on establishing relationships with local wholesalers, business contacts and political networking because trade policy and lobbying heavily impacts the market and business relations are tainted with political influences. Brazil aims to capitalize on historic relationships with Africa to further boost bilateral trade. Japanese Used car trade The used car trade is different from the prior two cases as the commodities originate from industrialized countries (e. g. Japan), but trade is mostly facilitated by traders from emerging economies (Pakistanis).
The expatriate Pakistani car dealers first entered the African market seeking an alternative market as import of re-conditioned cars into their home country was banned, and have eventually evolved into major wholesale buyers of the grey imports. Their competitive advantage lies in dense ethnic networks that give access to business resources. The popularity of grey imports are due to low prices compared to local manufactures, and they present such strong competition that South African car manufacturers and RMI have lobbied with success to restrict the used car business.
Chinese Sneakers Trade The Chinese traders are the only migrant entrepreneurs that sell commodities from their home country, with the traders setting up shops in Oshikango while being linked to wholesale merchants in China through agents in their home country, who are usually family members. Chinese commodities play an ever-increasing role in consumption changes in Africa and are popular due to cheap prices. Chinese traders capitalize on the market demand and are purely profit-seeking, with limited cultural immersion into the African society or formation of networks even among themselves.
However, they thrive in the business because potential competitors who want to trade in cheap Chinese commodities face cultural obstacles in dealing in the Chinese business environment, and the Chinese traders have carved a niche for themselves by acting as effective brokers between China and Africa. The four trade networks are organized in their own distinct ways and rely on different forms of social integration along ethnic lines of the migrant entrepreneurs.
Premuim Hair Care Llc Business Plan
Executive Summary Introduction Mission Vision Strategy & Assessment Management Team Five Year Proforma Business Opportunity Market Product & Services Customers Value Proposition Demographics + Target Markets Site Selection Competition Store Operations Store Front Store Space – Experience Store Staffing Compensation Regulations Supply Chain Cash Back-office Systems Security Key Performance ...
The key lies in being successful ‘cultural brokers’ to bridge different markets, and each of the four minorities in the case studies have their own competitive advantages to thrive in their specific industries. The facilitation of trade has boosted consumption, and has ‘modernized’ the town of Namibia as more aspire to climb the social ladder of consumption. Signs of modernization include changing names of local establishments to more Western names (modernization is perceived Western-style by the Africans) and more billboard advertisements.
Much political discussion also revolves around consumption as more people also now believe in personal wealth gains rather than political struggle to attain social mobility. In the words of Dobler, ‘Consumption is both its expression and its ultimate goal’ of ‘individual prosperity’. People consume in order to display their wealth, while wealth is also a means to fuel more consumption. In this pursuit of ‘social markers’, South African firms are looked up to as the main proponents of modern consumption, while Chinese shops bear a stigma of being cheap.
Paradoxically while Chinese goods are in demand due to their cheap prices, they are criticized as ‘neo-colonial enterprises aimed at taking over the Namibian economy by flooding the market with cheap junk’. A westernized style of living is still the ultimate aim as old stereotypes of Western superiority exist. However as consumption patterns shift with emerging trade networks and economic powers, this will perhaps change perceptions of the Africans of the world at large. (959 words)
