There are many causes that affect market instability in coffee markets. Free trade involves the removal of protectionism and external liberation in developing countries which has adverse effects on their economies (Collier, 2010, p.281). Developed countries will face costly expenditures to subsidise the coffee farmers and implementing buffer schemes that will cost the governments. On the other hand, the consumers will spend small amounts of cash to buy raw coffee due to fierce competition and the consumer welfare choice will increase. Conversely, in developing countries many coffee farmers suffer significant losses due to competition from the developed nations' raw Continue reading...