Showing posts with label Drug Markets. Show all posts
Showing posts with label Drug Markets. Show all posts

Oct 3, 2013

" The Myth of the Ethical Consumer "

This is not a new book, but interesting nonetheless, from Amazon
Do consumers really care where products come from and how they are made? Is there such a thing as an 'ethical consumer'? Corporations and policy makers are bombarded with international surveys purporting to show that most consumers want ethical products. Yet when companies offer such products they are often met with indifference and limited uptake. It seems that survey radicals turn into economic conservatives at the checkout. This book reveals not only why the search for the 'ethical consumer' is futile but also why the social aspects of consumption cannot be ignored. Consumers are revealed to be much more deliberative and sophisticated in how they do or do not incorporate social factors into their decision making. Using first-hand findings and extensive research, The Myth of the Ethical Consumer provides academics, students and leaders in corporations and NGOs with an enlightening picture of the interface between social causes and consumption.
I has hoping that marijuana or cocaine consumers in the US would care about drug-related violence in Latin America . . .  

Sep 29, 2013

Why the U.S. Will Become the Main Marijuana Exporter

Wikimedia Commons
Arguably the main producers of marihuana are Mexico, Paraguay, and South Africa, but if, like in the case of Colorado in the U.S., more states start legalizing pot markets, it might well be the case that in a few years the U.S. will become the leading producer of cannabis in the world. The legalization of marijuana in the U.S. responds to many causes, one of them is health benefits. By legalizing marijuana some states have won a "first mover advantage," which means that the producers, call some of them entrepreneurs, will have more time to experiment with new technologies, including marketing strategies and patenting, to place well their products in the world market place. I say more time compared with producers in countries where the product remains illegal, where producers pay a risk premium. 

Think about the case of corn, which was not native of the U.S. Technology and economies of scale made possible for the U.S to become a world leader of corn production. Today even China buys corn from the U.S. 

Another possibility is what happened with chocolate production. Cocoa is produced mostly in West Africa, and it is imported and transformed into chocolate in countries like Switzerland which have become world leaders in high quality chocolate, and they get higher profit margins. 

The same might happen with cannabis. The U.S. and European countries are legalizing its use. And a combination of technology and economies of scale will make them world leaders in the production of the plant itself or/and the final products. 

That will happened because it will be cheaper to produce, not only because of better technology, but also because it is legal to do so. Latin American countries will lagged behind in the legalization of the plant and that will affect greatly their capacity to keep their leading role in production, and more so, of transformation. It will be very hard to LA countries to catch up. 

In a few years Colombians, Mexicans, etc., will be importing different varieties of cannabis products from the U.S., and the drug will appear as  component of the U.S. GDP.