Case study question

Chocolate had always been considered an affordable little luxury, associated with romance and celebrations. Therefore in 2000 and 2001, revelations that the production of cocoa in the Cte d'Ivoire involved child slave labor set chocolate companies, consumers, and governments reeling.In the United States, the House of Representatives passed legislation mandating that the FDA create standards to permit companies who could prove that their chocolate was produced without forced labor to label their chocolate "slave-labor free." To forestall such labeling, the chocolate industry agreed to an international protocol that would give chocolate producers, governments, and local farmers four years to curb abusive practices and put together a process of certification.

The stories of child slave labor on Cte d'Ivoire cocoa farms hit Cadbury especially hard. While the company sourced most of its beans from Ghana, the association of chocolate with slavery represented a challenge for the company, since many consumers in the UK associated all chocolate with Cadbury. Furthermore, Cadbury's culture had been deeply rooted in the religious traditions of the company's founders, and the organization had paid close attention to the welfare of its workers and its sourcing practices. In 1908, the company had ended a sourcing relationship that depended on slave labor. Now for the first time in nearly 100 years, Cadbury had to take up the question of slavery again.

By the 2005 deadline, the chocolate industry was not ready to implement the protocols and asked for two years more to prepare. Privately, many industry officials believed that the kind of certification sought by the protocols was unrealistic. Because cocoa was produced on over a million small farms in western Africa, insuring that all of these farms, most located deep in the bush, complied with child labor laws seemed impossible. Furthermore because beans from numerous small farms were intermingled before shipment, it was difficult to track those produced by farms in compliance with labor standards and those that were not. Chocolate had always been considered an affordable little luxury, associated with romance and celebrations. Therefore in 2000 and 2001, revelations that the production of cocoa in the Cte d'Ivoire involved child slave labor set chocolate companies, consumers, and governments reeling.In the United States, the House of Representatives passed legislation mandating that the FDA create standards to permit companies who could prove that their chocolate was produced without forced labor to label their chocolate "slave-labor free." To forestall such labeling, the chocolate industry agreed to an international protocol that would give chocolate producers, governments, and local farmers four years to curb abusive practices and put together a process of certification.

The stories of child slave labor on Cte d'Ivoire cocoa farms hit Cadbury especially hard. While the company sourced most of its beans from Ghana, the association of chocolate with slavery represented a challenge for the company, since many consumers in the UK associated all chocolate with Cadbury. Furthermore, Cadbury's culture had been deeply rooted in the religious traditions of the company's founders, and the organization had paid close attention to the welfare of its workers and its sourcing practices. In 1908, the company had ended a sourcing relationship that depended on slave labor. Now for the first time in nearly 100 years, Cadbury had to take up the question of slavery again.

By the 2005 deadline, the chocolate industry was not ready to implement the protocols and asked for two years more to prepare. Privately, many industry officials believed that the kind of certification sought by the protocols was unrealistic. Because cocoa was produced on over a million small farms in western Africa, insuring that all of these farms, most located deep in the bush, complied with child labor laws seemed impossible. Furthermore because beans from numerous small farms were intermingled before shipment, it was difficult to track those produced by farms in compliance with labor standards and those that were not.

1.Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys its goods in large quantities and, therefore, at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates that

2. For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the

3. 8. Claudia would be willing to pay as much as $100 per week to have her house cleaned. John's opportunity cost of cleaning Claudia's house is $70 per week. Assume Claudia is required to pay a tax of $40 when she hires someone to clean her house for a week. Which of the following is correct?

4. The belief that education makes a person more productive and thereby raises his or her wage is referred to as the ________ view of education.

5. The basic economic problem leads to which one of the following key economic decisions that any economy must address?

6. Value judgements inspiration economic conclusion _________-manufacture and strategy because value decisions___________

7. Which one of the resulting is a fundamental resolve of economic movement_________? The construction of goods to_________

8. The main organizational modification __________between Financial side and the ordinary sciences is that economists____________

9. A family hereditary 15,000 from a long-lost aunt. They are advisement up whether to buy a new car or go on a trip to Australia for a month. They choose to go to Australia. The occasion cost of this conclusion is

10. The making likelihood curve can be used to demonstrate ________each of the resulting, with the exemption of________________