Imported Tea

Paper Summary:

The paper looks at the factors which influence the demand for imported consumer goods. It goes on to build appropriate import demand models for analyzing the pattern of imports of tea for consumption in the United States.

From the Paper:

"As far as tea is concerned, as is generally believed, it sets its own prices, using prices of its close substitute i.e. coffee, real income, population, price elasticity, income elasticity, cross elasticity, change in the consumer's preferences or habits do more determine the level of demand for its imports in any country. Based on the above proposition, the study will build appropriate import demand models for analyzing the pattern of imports of tea for consumption in the United States. Since tea imports constitute an insignificant share in the total imports of the United States, the variable "the availability of Foreign exchange" has been deliberately excluded from the model. I would surmise that the Import Expenditures would rise as GDP rose and prices fell.
An important reason for the fluctuations in exports is reflected by changes in the value of the dollar relative to foreign currencies. The dollar lost value against foreign currencies in the1970s, making U.S. agricultural products less expensive in the importing countries and, predictably, sales increased. In the early 1980s the dollar gained strength, making U.S. exports more expensive to foreign buyers, and exports declined. The dollar then weakened again and exports recovered somewhat. These trends had the inverse effect on imports (US Census Bureau, 2002)."

More papers on Imported Tea:

• Essay # 59314 : "History of Tea in the United Kingdom"
• Analytical Essay # 136341 : "A History of Tea: A Medicinal Drink for the Ages"
• Analytical Essay # 115785 : "Japanese Tea Ceremony"

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