Cashew Case Study

1101 Words3 Pages
bulb-icon

Recommended: Comparative advantage

1. a) By the comparative advantage theory a country should produce products where they are efficient in producing in large amount.
India is one of the world’s leading producers and also the leading exporters of cashews. In the year 2011, India exported for about 145,000 metric tonnes which earned a sum of 0.92 billion US$. Now India has the cashew cultivating land of nearly 1 million hectares and does 65% of the entire world’s cashew exporter.
As India was the leading producer of cashew nuts they had an edge over other countries thus providing an absolute advantage over everyone. Even now India is one of the leading producers of cashew in the world and is only behind the world’s largest producer Nigeria and soon will result in coming to the top again in the coming years. Thus this theory is suited for the case that we talk about the cashew.

b) According to Heckscher – Ohlin theory it is said that
“Comparative advantage arises from differences in national factor endowments”
Factor endowments are basically classified into four resources such as land, labour, capital and energy. He also said that the country which is provided with any one of the factor in abundant should be produced in large amount thus lowering the cost of the manufacturing process. The country should import the products which they are not good at.
According to this theory, the case states that India had the most skilled labours and the agricultural area when compared to many other countries in the world. India lead the race from the year 1920 till 1970. By that time Brazil and some of the African countries joined the race along with India, but could not compete with the standard of skilled labour when compared to the labours in India. Other countries used machin...

... middle of paper ...

...mplemented in order to provide the efficient and large quantity of cashews produced in the country. As it said that the cultivation deals with both the nut and the fruit, I would consider concentrating on the fruit if the work does not suit with the nuts production. It is also said that the fruit can be mainly used in the commercial production such as candy, jams, chutney, juice, carbonated beverages, syrup, wine and vinegar. It can be used in another area by using the nut shell in the process of producing oil from it. It was considered as a waste product once but it would be declared fit to carry out with the project now. The oil produced can be used friction in brake linings and clutch facings. By increasing the production of the manufacture of cashews would help in the manufacturing of oil as it would require a large amount of nut shells to carry out the process.

Show More
Related

  • Cocktail Party Economics Summary

    735 Words  | 2 Pages

    To reiterate, let’s construct another example of two companies that produce oranges. Company number one is located in Florida where it’s the perfect environment to produce oranges. Company number two however is located in Toronto, which to be fair, isn 't a suitable environment to produce natural oranges, unless of course they’re produced in a green house. Although both companies are able to grow and produce oranges, company number one has the absolute advantage because they use the much cheaper and natural methods, hence the greater demand. This theory can be contradicted with the concept of comparative advantage, which in description means the ability to produce specific goods at a lower opportunity

    Read More

  • Brazilian Government Intervention: Acai Berry

    997 Words  | 2 Pages

    As it becomes a successful market in Brazil, the supply is increasing as new companies join the market. The shifts have caused the market equilibrium of both the price and quantity to increase; between 2000 and 2009 the price increased up to 6000% (task sheet figure). The market has grown drastically, the supply increasing from 104 874 tonne in 2005 to 115 947 tonne in 2009 (IBGE, 2008, 2010). This market is efficient and is generating a gross net income without any intervention from the Government. However as the acai berry is exported, the local consumers have to compete with higher prices.

    Read More

  • Sugar Cane: Past and Present

    2499 Words  | 5 Pages

    McIlroy, R.J. 1963. An introduction to tropical cash crops. Ibadan University Press, Nigeria. 163 pp.

    Read More

  • Shea Butter and World Trade

    1137 Words  | 3 Pages

    The Shea tree is indigenous to the semi-arid Sahel region of West Africa which extends over five thousand kilometers. The processing of Shea Butter from the nut is traditionally done by the women of the community. For centuries these women have collected, marketed and transformed Shea nuts into a multipurpose product. When the nuts are crushed they produce a vegetable fat known as Shea butter. After processing the butter is stored in cool storage rooms until they are shipped to Sekaf International distribution centers. T...

    Read More

  • The Brazil Nut (Bertholletia excelsa)

    1311 Words  | 3 Pages

    Brazil nuts are harvested at plantations and in the wild. Plantations are being developed in various parts of the Amazon. Fazenda Aruana is the owner of a 12,000 hectare former cattle ranch, partially converted to a Brazil Nut plantation in 1980. By January of 1990, 318,660 Brazil nut trees were planted on 3341 hectares of land. Fazenda's original intent was to plant Brazil Nut trees in a 20 by 20 meter grids and allow cattle grazing between the trees. The trees in the Aruana plantation are the result of grafting high yield clones from the region of Abufari Amazonas were Brazil nuts are know for their large fruits and seeds. As a result of fertilization from the same clones, the fruit production among clones has been low(2). Another danger in using so few clones is the ability to resist attack of disease and insects.

    Read More

  • Influence of Political Institutions on Developing Countries

    1002 Words  | 3 Pages

    on tropical agricultural products, such as coffee and bananas and its climate and resources are

    Read More

  • Critically evaluate Porters Diamond Theory and discuss in what way it helps international trade

    1931 Words  | 4 Pages

    ...ain, Chandler in 1994 endeavoured to handle this issue by creating "late improvement hypothesis", which states that creating nations can skip through every one of the four stages depicted by Porter. This is on account of they can import or mimic the innovation and business frameworks which recently exist in other created countries. China, for instance, could expand their gainfulness by adapting new items in their home nation and hence, attaining an expense advantage technique. This was expected for the most part the low wages and good trade rates arrangement. Along these lines, China could expand its gainfulness without enhancing, without any danger of innovation improvement. Just USA, which has high capital for every specialist and is as of now in the innovative wilderness, must advance to succeed, heading Porter to over all inclusive statements different nations.

    Read More

  • Singapore And Singapore: A Comparative Advantages Of Singapore

    1143 Words  | 3 Pages

    Comparative advantage means that an industry, firm, country or individual are able to produce goods and services at a lower opportunity cost than others which are also producing the same goods and services. Also, in order to be profitable, the number in exports must be higher than the number in import. From the diagram we seen above, Singapore is seen to have a comparative advantage in some services. The services are Transport, Financial, business management, maintenance & Repair and Advertising & Market Research, etc. These export services to other countries improve the balance of payment. On the other side, Singapore is seen to have a comparative disadvantage in some services. The services are Travel, Telecommunications, Computer & Information,

    Read More

  • Rice Production Essay

    1855 Words  | 4 Pages

    India is one of the largest producers and exporters of rice in the world, despite the fact that it consumes 95% of the rice it produces. Hence rice prices are a major determinant of the welfare of not only consumers, but also producers in India. Since rice is also the staple diet of over half the population of the world, its supply and price has a major impact on food security, a highly debated topic in and outside India. In 2007-08, the world experienced a major food crisis, with the prices of the four major agricultural commodities- wheat, corn, soybean and rice reaching record highs. From January 2006 to October 2007, global corn and wheat prices more than doubled while from November 2007 to April 2008 global rice trading prices tripled. This can be seen in the graph below:

    Read More

  • The Past, Present, and Future of India

    3802 Words  | 8 Pages

    India's strategy for development has had many critics. It was pointed out that the emphasis on heavy industry

    Read More

  • Communism Case Study

    1895 Words  | 4 Pages

    How – the goods and services are made are chosen by the producer, often choosing resources which will give them a competitive edge over other companies. Such as the choice of cheap labour or mass production.

    Read More

  • International Development in Developing Countries

    2380 Words  | 5 Pages

    ...an overabundance of information all applicable to the topic. My feeling was that such an overwhelming load of facts and systems directed me away from the most important facts of the chapter. Its imperative that the student understands the small scale relationship to economic development. Therefore my attempt was to highlight the main topics of the chapter and relate them to the reader to provoke intrest and thought towards many of these important life changing situations that occur everyday. If one can see past all the theories primarily and see the cause and effects behind them, they’re appreciation for the ideas stated in the theories.

    Read More

  • Coal In Pakistan Essay

    1268 Words  | 3 Pages

    Several processes can be done on raw materials obtained from forests in order to increase their value. The pulp wood can be processed to make paper and paper based products. The export of these products will enhance earnings through foreign exchange for Pakistan. Timber wood can be used to make furniture. Hardwood can be used in heavy mechanical industries in order to make tools and/or parts of mechanical machineries. The export of these products will bring foreign exchange to Pakistan. The medical herbs and seeds extracted from forests can be processed in pharmaceutical industries in order to make high quality medicines. Hence raw materials from forests can be converted into value added products which in turn can bring economic well-being to Pakistan.

    Read More

  • Importance Of Agriculture Essay

    1207 Words  | 3 Pages

    Our country has favorable conditions for the development of industrial crops and fruit trees: The climate is humid tropical monsoon with high heat, high humidity. There are many types of soil suitable industrial crops: feralit land in the mountains, alluvial soils of the plains. The labor abundant experience. Processing industry is growing; large market demand. Policies to encourage the development of the state. The development of industrial crops and fruit trees brought many great significance: Supply of raw materials for the processing industry, providing exports. To contribute to job creation, redistribution of labor on a national scale. Promote economic and social development in disadvantaged areas. Speaking of the achievements of agriculture, we will talk to the achievement of food production in our country recently: Rice planted area increased: 5.6 million hectares (1980) to 7.3 million hectares (2005). The crop structure has changed. Productivity increased at 4.9 tonnes / ha / year. Food production in paddy increased: 14.4 million tonnes (1980) to 39.5 million tons, including 36 million tons of rice (2005). Average food at over 470 kg / person / year. Vietnam is one of the leading rice exporter in the world. Acreage and crop production also increased rapidly. The Mekong Delta is the largest food producing countries, accounting

    Read More

  • The Gap Between Rich and Poor

    1248 Words  | 3 Pages

    ...ndustrial capacity, technology, and infrastructure to compete with the industrialized countries, which have been honing their economic might for over a century.

    Read More

More about Cashew Case Study

Open Document