In this week's second Discussion, you will look at a specific example that illustrates the effects of contextual factors on the operations of international businesses. As you review the context and corresponding video, consider the driving forces that contributed to the internationalization of coffee operations in the first place, as well as the changes that are affecting operations now.

Context: Low barriers to trade have helped to create a thriving global market for coffee producers, allowing them to capitalize on efficiencies not available in other locations. While the United States does produce some coffee in places like Hawaii and Puerto Rico, for example, the country is one of the worlds biggest coffee importers, sourcing much of its bean supply from Columbia and Brazil.

Prompt: Watch the below video, then discuss the implications of changes in the macro environment, such as Brazils frost and what they mean for small coffee houses. How do you think this could change the competitive landscape for coffee at the retail level? What can you learn from this example about the nature of international business?