That most production of coffee emanates from the third world countries, while the manufacturers of this coffee, popularly referred to as roasters are found in the first world countries.Global trade in coffee has been made possible because of the international liberalization of trade. Liberalization of trade involves reducing international barriers to trade in services and goods (Sherer, 2005). This principle is based on the concept that a market works better and most efficiently when competition existing in it, is less regulated. It is important to denote that one of the principles of liberalization is specialization.This refers to a situation whereby a country will produce a product that it can effectively produce. This is because the country under consideration holds a comparative advantage over other countries, by virtue of natural resources, climatic conditions, proximity to market, and lower wages (Sherer, 2005). The production of coffee is guided by these principles, and countries that produce coffee have a tropical or sub-tropical climatic condition. Countries such as Brazil, Colombia and Vietnam are some of the largest coffee producing countries in the world. This is because their climatic conditions are favorable for the growth of coffee (Sherer, 2005).The consumption of coffee has taken place for centuries, ever since it was identified and used by Arabs as a source of beverage. This was during the 15th century. This product was discovered and thereafter cultivated in Ethiopia, which it later spread to the entire continent of Europe during the 16th century. There are two varieties of coffee, namely the Robusta, and Arabica coffee beans. Of these two types of coffee, Arabica coffee bean is the most traded coffee in the world. This is because its beans are of higher and superior quality as opposed to the coffee beans of Robusta.It is important to denote that at other occasions, and based on demand, Robusta and Arabica coffee beans are always blended together. This is also beneficial to the customers because it manages to offer variety. Coffee is only cultivated and grown in subtropical and tropical climates of the world. This is primarily in Asia, Latin America, and Africa. Scholars denote that one coffee tree, is able to produce 1 pound, of green coffee in a year. Coffee was introduced in developing countries by colonial regimes. For example, in Africa, Britain was able to introduce the growth of coffee in countries such as Kenya,
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