2077 International Business - Europe’s Strawberry

                                                                                             Source: Radcliffe (2018)

The diagram offers an indication of a shift in price from P* which is devoid of imposed tariffs to P¹. Price increments provide some motivation for country-specific companies that deal with the production of strawberries to venture into the commodity's production.  The implication is that Qd depicts some movement to the right. However, Qw experiences a shift to the left. Tariffs often pave the way for an increment in the prices attached to commodities which are imported. For example, the duties currently imposed by the EU are geared towards punishing exporters from China in relation to their trading endeavors in China (Khanna & Tripathee 2018). Among the practices which were synonymous with the exporters is that their frozen strawberries were sold at rates lower than the prices allowed domestically. In some instances, the prices were lower than the expenses incurred for processes affiliated with production (Brancoli et al. 2017).

The outcome is that producers operating domestically are not mandated to decrease the prices they attach to their strawberries. Furthermore, clients residing in nations where the strawberries are imported have to pay prices which are exorbitant for different items on offer. More specifically, soft fruits which are not domestically sourced would be subjected to some extreme price hikes that would serve to discourage locals from making their purchases (Krause & Machek 2018).  The implication is that some of the clients may elect to cease making purchases paving the way for a reduction in the anticipated levels associated with demand. The volume affiliated with the imports anticipated for the nations affiliated with the European Union is anticipated to register a reduction that is quite drastic (Brancoli et al. 2017). Tariff imposition sometimes culminates in retaliations particularly for the nations which might be affected (Tshikala et al. 2018).

2. Industries operating domestically are often among the beneficiaries of the tariffs a nation may decide to impose (Brancoli et al. 2017). Imported fruits impose a threat to companies whose operations are local. Increased competition forces facilities to foster a reduction in the scale at which they are able to operate. The outcome is that the capital directed towards strawberry production can be safeguarded (Tshikala et al. 2018). Hence, the growth anticipated for companies becomes achievable owing to their continued operations. Companies such as Bel'export which is located in Belgium are not only able to control processes that relate to production, but they can also make certain that their commodities are commercialized in a manner which can be deemed as adequate.

The individuals employed by the industry can expect some protection from the tariffs implemented with regards to imports.  In 2015, agriculture accounted for 10 million individuals who are employed in the EU. With regards to employment holistically, 4.4% of the inhabitants derive their livelihood from agriculture affiliated endeavors. However, imports force enterprises to reduce the margin at which they are able to operate (Brancoli et al. 2017). The result is that workers are forced out of their positions as enterprises opt for operations with decreased expenses where labor is concerned. Hence, it can be anticipated that unemployment is to rise from the rate currently evident at 8.95%. Tariffs ensure that workers are not subjected to dismissal from their posts offering some security with respect to the sources from which they are able to obtain some income (Tshikala et al. 2018).

Governments also gain through the imposition of tariffs.  Taxation on commodities which are imported results in an increment of the revenue that accrues to respective governments. Even so, the percentages must attract a small portion of the incomes attainable by importers (Roberta et al. 2018). Where tariffs are exaggerated, the outcome is that commodity imports to various regions located in the EU may be hampered.

Exporters are often categorized among the parties that can be negatively affected by tariffs the EU imposes on their commodities.  Taxation increases the prices affiliated with the products offered. However, strawberries produced locally cannot compare to imports as they are cheaper (Tshikala et al. 2018). Hence, countries such as China have to contend with situations where their commodities become too exorbitant for their targeted clients to make purchases (Tittarelli et al. 2017). While companies operating locally are adequately protected, foreigners are forced to adhere to stringent requirements featuring additional expenses. Consumers are also forced to pay prices which are high to gain access to the commodities offered. Governments can also loose through the wars that might ensue in trade paving the way for tariffs which are retaliatory (Brancoli et al. 2017).

3. Brexit instigated changes with regards to how European regions could relate. The agreement mandates that access to the UK should only be availed to EU workers whose skill levels are high (Tshikala et al. 2018). Moreover, EU nationals are expected to encounter extensive restrictions in regard to movements endeavored to offer labor in other regions where their services might be in demand. The visas offered by the UK to individuals who are not EU nationals is estimated at 20,700 annually (Shashank et al. 2017).

British strawberries are likely to experience a 50% price increase as a result of the loss of workers who previously worked in the production of strawberries for sale. The laborers who work seasonally in the UK to ensure that fruits are picked are totaled at 29000. EU nationals account for 95% of the UK's seasonal workers (Chaffin 2017). The workers not only come from Bulgaria but also Romania. The implication is that the imposition of the directives would limit the ease with which workers would be obtained.

In the UK, the production of soft fruits accounts for £1.2bn of the revenues attained. Strawberries have been instrumental in accounting for the expansion of the UK's incomes. The pound was subjected to a slack in value which paves the way for a 10% reduction in the wages offered to EU workers (Tshikala et al. 2018). The referendum has resulted in a situation where the firms seeking services aimed at recruiting workers have increased by a 30% margin (Byrne 2018).

                                                                                     Source: Economicsonline.co.uk (n.d.)

In the market that is present in the UK for strawberries, the demand in relation to labor is inelastic. The region does not have individuals who can substitute the reduction experienced in relation to EU workers (Krause & Machek 2018). Although workers may lose their jobs owing to restricted entry, their wages will have to be increased particularly where they are exceptionally skilled.

                                                                                            Source: Pettinger (2017)

Restrictions relating to workers available pave the way for shifts in the commodities which can be supplied for consumer purchase. Contributing factors include increment in the expenses that production is able to attract (Grant 2017). A reduction of available employees facilitates a limitation in levels that relate to productivity. The government in the UK should also anticipate that the taxes which can be levied on income will reduce while growers suffer a significant decrease business-wise (Tshikala et al. 2018).

4. Common markets improve the prospects for the regions involved to enjoy the benefits which are attributed to integration. Partner states ensure that nationals are not subjected to any form of discrimination particularly where they need to traverse the region for purposes which are work motivated. Workers enjoy a status that features equality, and any matters that may ensue are transparently handled (Rye & Scott 2018). When tariffs are imposed against prices which are lower, the outcome is that domestic consumption can be adequately protected.

Trade aversion would result when tarrifs are imposed on commodities whose prices are categorized as being low (Brancoli et al. 2017). Tariffs raise prices making some of the items to face some challenges in relation to their availability. Hence, the output that traders are likely to have from such commodities is most likely to be economically low. The implication is that the traders whom might be affected will elect to source for other markets where the prospects presented for their commodities are more reasonable (Krause & Machek 2018). The locations exporters are bound to opt for ensure that clients are not subjected to situations where goods are overpriced owing to the tariffs involved (Tshikala et al. 2018).

Openness to trade encourages regions to experience exponential growth and opportunities can be created to ensure that trading activities are effectively conducted. Moreover, resources can be effectively utilized to ensure that the parties involved are able to have access to the benefits desired (Tshikala et al. 2018).

                                                                                   Source: Tutor2u.net (n.d.)

Markets which are common ensure that consumers are able to obtain prices which are favorable (Brancoli et al. 2017). Moreover, clients are able to make their selection from choices which are quite diverse. Opportunities to work in different regions as per the preference of employees would be possible. The profitability of operational enterprises would be possible because the clients mandating access to available commodities would be extensively increased (Verdon 2017).

However, monopolies might end up forming.  This is because firms may establish their dominance in specific markets (Tshikala et al. 2018).  Suppliers are more likely to be exploited where they are mandated to accept prices which are lower for commodities necessary in strawberry growing. Some organizations might still be forced to encounter barriers with respect to the activities engaged in (Krause & Machek 2018).  Quality issues are bound to emerge as activities which are business related would be geared towards the attainment of the targets established for the attainment of profits. Strategies to ascertain that expenses are reduced would mostly be unethical. The result would be the pollution of the surroundings and the exploitation of available workers.

Resources such as water as well as energy are bound to experience a massive strain in years which are to come. Regardless of the need to ascertain that overall yield is increased, the projections pertaining to future endeavors are likely to be extensively constrained by weather. Currently, Florida is experiencing a reduction in the revenue attainable from strawberry farming. However, it is projected that reduced profits are bound to continue due to increased imports, particularly from Mexico (Krause & Machek 2018). Additional factors which are set to impede the operations relating to the sector include extensive regulations as well as international competition.

Among the issues anticipated to be aggravated over time pertaining to strawberry production in the UK includes acute shortages with respect to labor availability. Growers are anticipated to face challenges in sourcing for workers willing to pick berries. Hence, Britain may face some hurdles in securing adequate food supplies for its masses. The outcome is that the health of its population might be jeopardized (Gardenia bread: Demand & Supply n.d.). Moreover, the economy affiliated with the nation's countryside may cease to be sustainable. The selection made by laborers with regards to the areas where they prefer to work relate to the length of the respective season and the weather they can anticipate. Such factors determine whether workers can attain huge profits (Krause & Machek 2018).  The region is also likely to experience a surge in the provision of commodities from other nations increasing overall competition (Brancoli et al. 2017).

Conclusion

Europe offers an extensive market in which strawberries can be offered by companies operating domestically for consumption by clients or by operators from different nations. Exporters are required to adhere to the requirements set pertaining to the product that they would like to offer in various regions which are located in Europe.  The imposition of tariffs affects the forces evident in relation to how commodities are demanded and their overall supply. Aspects which are of a nature that is political can be expected to affect the dynamics that might be prevalent market-wise. The difficulty that workers may face in moving between regions to offer their agricultural know creates a shortage. The implication is that the prices affiliated with the commodities on offer are subjected to an increment which can be deemed as massive. However, some measures barring prices which are low would serve to protect strawberry production.

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