Giri_Sajib_Eco105_Assessment 2.docx - Running head BUSINESS ECONOMICS Business Economics Name of the Student Name of the University Author note 1

Giri_Sajib_Eco105_Assessment 2.docx - Running head BUSINESS...

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Running head: BUSINESS ECONOMICS Business Economics Name of the Student: Name of the University: Author note:
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Market for beer Answer 1 According to a report by Armstrong (2018), majority of the European countries and USA consume more beer than the Australians. Czech Republic tops the list of highest beer consuming country in the world. As seen in the following chart, in 2017, the revenue from the sales of beer per capita in Czech Republic was 137.38 liters and that in Australia was only 71.82 liters. Australia ranks 13 th in this list. Figure 1: Beer Sales per capita in 2017 (in liters) (Source: Armstrong 2018) Both the countries have a long history of beer consumption and they still carry on the tradition. However, the level of beer consumption is significantly higher in Czech compared to that in Australia because of the beer drinking culture and availability of cheaper alcohol in Czech. BUSINESS ECONOMICS 1
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Secondary data on the sales of the beer would reflect the differences in the beer consumption among two countries, as seen above. The chart on the sales data is effective for a visual representation of the comparison between two countries. Hence, secondary data on the beer consumption comparison should be collected from an authentic website to fulfill the objective of effective comparison. Answer 2 The difference between the beer consumption between Australia and Czech Republic can be described by the following factors. Cheaper beer in Czech: The price of beer is extremely cheap in Czech than in Australia. According to (2018), a 0.5 liter draught of domestic beer costs around 7 AUD in Australia while it costs around 1.88 AUD in Czech Republic. Thus, there is a price difference of almost 73.16% for beer in Czech and Australia. Similarly, for 0.33 liter bottle of imported beer costs 8 AUD in Australia while 2.51 AUD in Czech, with a price difference of 68.96%. Beer is relatively much cheaper in Czech than in Australia due to higher production. Culture: Czech Republic acknowledges historical significance of beer as a part of their culture. They consider beer drinking as a part of their lifestyle. The Czech beer is one of the finest quality beers in the world. It is found that, the Czech women feel that drinking less beer is a matter of shame to their culture (Scott 2013). According to them, beer has many benefits, such as, keeping the kidneys healthy, reducing blood pressure, good skin, stronger bones, reducing risk of heart attack and cancer (Jirasova 2016). On the other hand, the Australians are also a beer drinking nation. However, the trend has been changing towards wine drinking. People’s tastes and preferences are changing, based on income level, and health awareness. Health issues: The Australians are becoming more and more concerned about their health issues and hence, the overall alcohol consumption is falling. They feel wine is better for health and thus, wine consumption has increased significantly (Germov and McIntyre 2013). However, there is no such issue regarding beer consumption in Czech BUSINESS ECONOMICS 2
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