$15.00 $12.00
Read the article below regarding investment in the cotton industry in Africa, and answer the following questions.
http://www.nytimes.com/2007/01/14/business/yourmoney/14duna.html?adxnnl=1&adxnnlx=1169064007-yrLoCquNT1dDQnS+InjK8Q&_r=0
Discuss this article in terms of comparative advantage. Specifically, do you think that it makes sense for Dunavant to invest in this part of the world? If so, who will benefit? How will they benefit? (Hint do not limit your discussion to Africa.)
Explain potential outcomes of this investment in terms of Porters diamond.
part 2:
Finally, based on your knowledge of the country you investigated (Turkey), respond to the following.
What advice would you give to a company that sells automobile tires and is thinking of selling their products in Turkey ? (Hint – think of the 4 Ps product, price, place, and promotion).
What advice would you give to the same company if they were thinking of opening production facilities Turkey ? (Hint think about work force issues, legal systems, the economy, politics, etc.)
Part 1
A country should produce commodities in which it has an abundance of resources, according to the principle of comparative advantage. This ensures lower costs of production, high volumes and thus high sales. Comparative advantage makes a country or region much better in producing a particular good than its rivals (Tallman 2009). In this regard, Dunavant has made the right decisions to move to Africa to participate in the cotton trade………