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Which are the economic implications of this obesity problem in Mexico?
- Our country is losing 85 thousand millions, this is a lot of money that can be
used for other important things, like education, health, street’s maintenance
and infrastructure.
What strategies do you consider that governments can use to mitigate this problem?
- We need education so we make sure kids and adults know all the implications
of obesity. Years ago cigarettes were seen as something normal, then
scientifics realized that it was bad for health, so it was important that people
knew this information, they used publicity. This is a big strategie to end
obesity, not just publicity about how obesity affects the health, Mexicans need
to know that this problem affects economically speaking.
Price Quantity demanded Quantity supplied
$14 90 40
$15 85 45
$16 80 50
$17 75 55
$18 70 60
$19 65 65
$20 60 70
$21 55 75
$22 50 80
$23 45 85
$24 40 90
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Market equilibrium graph:
5. For me the main factor that changes is the price because if it is higher consumers will
demand less.
6. According to this quote from this article “en coca cola femsa hemos decidido que
estos cambio de precios se hagan de manera gradual en algunos de nuestros empaques
y productos durante el primer trimestre del año, de manera que ayude a minimizar este
impacto en los bolsillos de nuestros consumidores”, what kind of good does FEMSA
consider are sugary drinks, this good is elastic or inelastic? justify your answer.
- I can say this is an elastic good basing my answer in the affected demand by
another economic factor, in this case the price
7.Do a SWOT analysis for Coca Cola FEMSA,Weaknesses, Advantage, opportunities
and threats. Do you think that the Tax affects significantly the future growth of the
company, justify your answer.
- SWOT ANALYSIS:
Strengths:
● High demand
● Great distribution logistic
Opportunities:
● new products
● More healthy beverages
Weaknesses:
● High level competitors
● Bad health publicity
Threats:
● Unhealthy products
● an Excess in raw materials
- Yes, the Tax Affects the company. We have already seen that if the price is
higher the demand is lower, but honestly here in México I don't think 2 pesos
made the difference, maybe for someone those 2 pesos were significant but
they still buy Coca Cola.
8. According to the article, why, despite the fact that the IEPS was one mexican peso
per litter, the final price of the soft drinks varies for citizen establishments? justify your
answer.
- I think they based their prices on the location and the socioeconomic status of
their citizens. For Example they increased the prices in some “good” zones of
Mexico city and Guadalajara.
9. How do you evaluate the government evaluation in this market
- For me it was a great initiative, it was a win-win for the government and for the
health of Mexivans, but I really don’t think that 1 peso per litter made a big
difference for health issues. I’ve never heard anyone say that they didn’t buy
coca because now it is 2 pesos expensier.