Scribd Logo
Upload

Welcome to Scribd!

  • 1K views

    International Business

    Uploaded by

    Krishna Gurung
    This document discusses India's competitive position in the cashew nut processing industry and potential threats. It addresses three questions: 1. Absolute and comparative advantage theories help explain why cashew trees were historically grown in East Africa and Brazil but processed in India due to natural climatic advantages and acquired labor skills. 2. Threats to India's future competitive position include technology changes enabling machine processing, new competitors like Vietnam, and government support improving rivals' quality and quantity. 3. To maintain competitiveness, an Indian cashew processor should focus on high and low grade nuts, find new product uses, invest in latest machinery, and target niche markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd

    International Business

    Uploaded by

    Krishna Gurung
    1K views2 pages
    This document discusses India's competitive position in the cashew nut processing industry and potential threats. It addresses three questions: 1. Absolute and comparative advantage theories help explain why cashew trees were historically grown in East Africa and Brazil but processed in India due to natural climatic advantages and acquired labor skills. 2. Threats to India's future competitive position include technology changes enabling machine processing, new competitors like Vietnam, and government support improving rivals' quality and quantity. 3. To maintain competitiveness, an Indian cashew processor should focus on high and low grade nuts, find new product uses, invest in latest machinery, and target niche markets.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses India's competitive position in the cashew nut processing industry and potential threats. It addresses three questions: 1. Absolute and comparative advantage theories help explain why cashew trees were historically grown in East Africa and Brazil but processed in India due to natural climatic advantages and acquired labor skills. 2. Threats to India's future competitive position include technology changes enabling machine processing, new competitors like Vietnam, and government support improving rivals' quality and quantity. 3. To maintain competitiveness, an Indian cashew processor should focus on high and low grade nuts, find new product uses, invest in latest machinery, and target niche markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    International Business

    Uploaded by

    Krishna Gurung
    This document discusses India's competitive position in the cashew nut processing industry and potential threats. It addresses three questions: 1. Absolute and comparative advantage theories help explain why cashew trees were historically grown in East Africa and Brazil but processed in India due to natural climatic advantages and acquired labor skills. 2. Threats to India's future competitive position include technology changes enabling machine processing, new competitors like Vietnam, and government support improving rivals' quality and quantity. 3. To maintain competitiveness, an Indian cashew processor should focus on high and low grade nuts, find new product uses, invest in latest machinery, and target niche markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    Cuse: The Indlun Cushew Processlng Industry

    Nume: Krlshnu gurung


    Roll no:007
    Submltted To: Suro| Rl|ul ( Lecturer ln Internutlonul Buslness)
    M.B.A 4
    th
    Trimester

    Q1. What trade theories help to explain where cashew tree products have been produced
    historically ?
    Ans. The Theory of absolute advantage best helps to explain the production of cashew tree
    products historically , according to this theory a country may produce goods more efficiently
    because of a natural advantage (e.g., raw materials or climate ) or because of an acquired
    advantage ( e.g., technology or skill for a product or process advantage ).In the given case it
    is said that the East African countries (Kenya , Mozambique etc) and Brazil had natural
    climatic advantage over India in the production of cashew nuts. India , on the other hand
    had an acquired advantage in the processing of the cashew nuts with its labors particularly
    adept at the cashew nuts processing from their early childhood. Due to this the cashew
    trees were raised in Brazil and East Africa and were processed in India.
    The theory of comparative advantage can also be used to explain the production of the
    cashew tree. The tropical countries were best suited to grow cashew tree and thus these
    countries exported raw cashew nuts , on the other hand the Indian labors were efficient and
    excellent at the processing of the cashew nuts thus India imported raw cashew nuts and
    processed it to later export it to other countries . But later all these countries tried to
    produce and process the cashew nuts in their own countries thus other new competitor like
    Vietnam also joined them which is soon going to surpass every one in the exports of
    processed cashew nuts.



    Q2.What factors threaten Indias future competitive position in cashew nut production?
    Ans. The factors that threatens Indias future competitive position in cashew nut production
    are as follows :
    a)Technology changes
    India has advantage over other cashew exporting countries due to its labor force who are
    skilled in the processing of high grade cashew nuts , but this advantage is on threat due to
    technology changes because new machineries are now being tried to make which might
    process high grade cashew nuts without any breakage problem.
    b)New competitors
    The Indian cashew nut industry is facing tough competition from new countries like Vietnam
    which also produces high grade cashew nuts and is targeting Indias export market like
    China, Saudi Arabia etc.
    c)Govt support in rival countries
    The Vietnamese govt. is spending heavily to introduce high tech strains into production in
    order to improve both quality and quantity.
    Q3.If you were an Indian cashew processor , what alternatives might you consider to
    maintain future competitiveness?
    Ans. If I, were an Indian cashew processor then I would have consider to focus on both high
    grade and low grade cashew nuts in order to be in the market. Secondly I would have
    concentrated my focus on finding new uses for the cashew nut and its waste product like
    the cashew fruit ,its oil etc. I would also try to bring in latest machineries and use it with the
    skilled workers in producing the highest grade output. New niche markets would also be in
    my alternatives in order to gain competitiveness.

    You might also like