Cause & Effect — Identify the Relationship:\nI. In Africa, a large part of coffee plantations has been destroyed.\nII. Starbucks is considering introducing non-caffeinated drinks in its international cafés.\nWhich option best captures the causal link between I and II?

Difficulty: Medium

Correct Answer: If II is the effect but I is not its direct/immediate cause.

Explanation:


Introduction / Context:
The stem pairs supply-side destruction in Africa’s coffee sector with a multinational’s product-mix consideration. We must decide whether this is a direct/immediate causal chain.


Given Data / Assumptions:

  • I: Large-scale destruction of coffee plantations in Africa.
  • II: Starbucks mulls non-caffeinated beverages.
  • Global sourcing is diversified; corporate product shifts are multifactorial (health trends, margins, supply risk).


Concept / Approach:
While supply shocks can influence product strategy, the leap from African plantation loss to “non-caffeinated drinks” is not a direct or immediate causal step; Starbucks sources worldwide and could substitute origins. Thus, II may be an effect of broader market considerations, but I is not its immediate/direct cause.


Step-by-Step Solution:

1) Identify that I affects global coffee prices/supply but not deterministically Starbucks’ decaf/non-caffeinated pivot.2) Recognize other drivers (consumer health trends, portfolio diversification, competitive positioning).3) Choose (d): II is an effect, but I is not its direct/immediate cause.


Verification / Alternative check:
If the stem had specified “due to African crop failure Starbucks lacks beans,” causality would be stronger; it does not.


Why Other Options Are Wrong:
They overstate immediacy or reverse direction.


Common Pitfalls:
Inferring firm strategy from a single-region supply shock in global commodities.


Final Answer:
Option D: II is the effect, but I is not its direct/immediate cause.

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