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Negotiation and Globalization

In: Business and Management

Submitted By joshua007
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Today, tea is the second most consumable beverage in the world after water. A total of 3,200,000 tons of tea were produced worldwide in 2004. India, China, Sri Lanka and Kenya, in that order, are the major producers of tea leaves. The USSR, Poland, Egypt and Pakistan emerged as major markets for Bangladeshi Tea. These ‘captive’ markets ensured protection to the industry and whatever, irrespective of quality, found its way to these markets. The price received for Bangladeshi tea was higher than its actual value in the open international market. Hence we lost our position as a supplier to those markets e.g. the U.K. who found alternative sources of similar quality of tea to meet their demand.
However the total volume of export started declining, as there was a continued growth in Bangladesh’s internal consumption with little noticeable increase in production. As a result of the greater demand and shrinking exportable surplus their teas once again became expensive compared to similar quality teas available from other producing countries,...

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