L.

Payment Method

The enterprise uses a cash in advance payment method as it is the safest method of payment. Payment
is usually made via wire transfer, credit card and escrow service.

M. Marketing Budget

Selling expenses are the costs associated with distributing, marketing and selling a product.

Selling expenses can include:

 Distribution costs such as logistics, shipping and insurance costs

 Marketing costs such as advertising, website maintenance and spending on social media
 Selling costs such as wages, commissions and out-of-pocket expenses

Selling Expense

Ultimately, small farmers and workers’ pay directly or indirectly through the loss of their well-being and
their means of livelihood. In 2017, in response to the impact from these production factors, Fairtrade
International commissioned Trucost and True Price, an organization in the Netherlands with expertise in
methods and tools for measuring and monetizing social impact, to conduct the first in-depth global
study on the externalized social and environmental costs of banana production. The main areas
evaluated were:

Social: taking into account insufficient wages and social security, harassment, occupational health and
safety, child labor, forced labor, insufficient income, discrimination and overtime.

Environmental: including elements such as air pollution, water pollution, land pollution, waste, land
occupation, water depletion and climate change.

1. External costs for Fair Trade producers were calculated at US$3.65/box, or 45% less than the
industry’s average of US$6.35/box.
2. 60% of external costs in the banana sector average are social costs.
External costs in Fairtrade production are less than the industry’s average in the following areas:
Insufficient income: 50% less in external social costs. Occupational health and safety: 94% less in
external social costs.

 Insufficient wages and social security: 64% less in external social costs.
 Land occupation: 8% less in external environmental costs.
 Water depletion: 19% more in external environmental costs.

Marketing Communications Expense

In order to convey the messages behind the enterprise, Excellent marketing communications budget is
very crucial. In lieu of the competitiveness of the market, the enterprise provides an excellent budget for
advertising and marketing including direct and in-direct promotional strategies.

Distribution Expense

All in all, the distribution cost of the enterprise includes the cost of shipping; the cost of packing; the
cost of freight; storage cost; handling expenses; and expenses of distribution employees.
Product Cost

Product cost is the direct and indirect costs businesses face from manufacturing the product or
providing a service. The product cost of the enterprise includes the following: direct labor, direct
materials, consumable production supplies and factory overhead.

N. Resource Requirements

Finances

Running out of money is one of the major reasons startup businesses fail. That's why startups need
financial resources to survive. The definition of financial resources is the money you have available for
spending. Types of funding commonly used in business include venture capital, cash in the bank and
assets your company can convert to cash easily.

Funding: Assets

The definition of financial resources covers a variety of business funding. Liquid assets are a common
financial resource. They include both cash and resources that can convert to cash easily.

Cash: Your cash on hand is such a valuable resource it gets its own financial statement, the cash-flow
statement. This resource includes the cash you have on hand at the office and what's available in your
bank account.

Checks: If you have checks from customers that you haven't cashed yet, they're another source of ready
money. Stocks and bonds: The market for these assets is well established, which makes it easy to put
them up for sale and get cash.

Foreign currency: If you keep foreign currency on hand for overseas operations, it should be simple to
convert that into local currency.

Operating income: This is the money generated by your business's operations. It's important not just as
a financial resource but because generating money by selling goods or services is a measure of how well
your company performs.
Personnel

Competencies may include knowledge, skills, attitudes and values. The competencies may deal with any
field: agriculture, science, technology, management, various professions (like medicine, law, engineering
and teaching), politics, public administration, home science, cooking, labor, telecommunications,
research and tourism. The capabilities may be developed in individuals, groups and communities or
collectives. The competencies may be simple like learning alphabets, or high technology applications to
medicine, space, defense, environment etc.

The competencies so developed could enable people to act and improve their own lives and those of
others.

 Competence building
 Commitment building, and
 Culture building

Production Capacity

In order for the enterprise to produce the maximum amount of products, it needs to consider its
manpower, machines and plants, raw materials and most especially the production budget. The
enterprise focus on providing funds on these segments to operate on its full capacity.

Appendixes
This statistic shows the volume of fresh banana imports in Canada from 2008 to 2020. In 2020, imports
of fresh bananas amounted to approximately 591,550 metric tons in Canada, an increase from around
580,850 metric tons the previous year.

https://clac- comerciojusto.org/en/2019/06/external-costs-of-banana-production/