Rotten – Bitter Chocolate – Economics
Netflix – 56 minutes
As you watch this documentary complete the activities below. You will need to pause, and possibly go back, on several occasions.
- With reference to the chocolate industry explain the term specialisation.
- Annotate the diagram below to show your understanding of the bean to bar supply chain. Add to this throughout the programme.
- Explain the significance of cocoa bean production to the Ivory Coast economy.
- Why is such a heavy dependency on one industry high risk?
- Explain how the price of cocoa beans is controlled by international markets.
- With reference to the chocolate industry, distinguish between relative and absolute poverty.
- With reference to the chocolate industry, explain what is meant by inequality.
- With the use of examples, explain what evidence there is of market failure in the chocolate industry.
- Discuss the arguments for and against the Ivorian Government only granting 100 export licences.
- Discuss the arguments for and against the use of future contracts in the trade of cocoa.
- Identify and explain the factors influencing the world market price for cocoa.
- “Farmers are 1 in 5 million selling to 1 in 5 buyers”. With reference to bargaining power, explain how this impacts on the world market price for cocoa.
- With the use of appropriate diagrams explain the factors affecting the price of cocoa between 2016 and 2017.
- Extension task: Research Cobweb theory. How does this relate to the fluctuations in cocoa prices?
- To what extent was the actions of the bank more to blame for the collapse of Transmar than fluctuating markets?
- Discuss the possible actions that could be taken to change the distribution of money within the bean to bar supply chain. Support each action with economic reasoning.
The ability to use diagrams to support arguments is key to success in Economics.
AQA GCE Economics Diagram Postcards
Edexcel GCE Economics Diagram Postcards