Cashew came, conquered and took deep roots in the entire coastal region of India.
There are three types of international business. Firstly, primary types which encompasses imports and exports of goods or services. While others encompasses licensing, franchising, management contract and et cetera.
International trade can be seen as a tool to improve our standard of living and it definitely benefit all participating countries. The reasons for international trade are really only an extension of the reasons for trade within a nation. International Trade is a must in today competitive world.
In order to succeed and not to become poor, a country must practice international trade. They are altogether three types of trade theories to explain where cashew tree products have been produced historically.
Firstly there is the principle of absolute advantage by Adam Smith which stated that each country should produces goods that it is good at. This trade theory led David Ricardo to his law of comparative advantage arguing the fact that what if a country is good at everything.
Lastly, comes Michael E Porter with his modern type of trade theory; the theory of competitive advantage. This theory creates questions on its reliability as the theory relied only on a country possessing absolute advantage in production, but it did not explain what caused the production disadvantages.
The most common question to this theory is: In the case study, it is obvious to see that India has the absolute advantage in the production of cashew nuts as India almost monopolized the cashew processing until the mids.
This monopoly was due to three factors.
India was the largest producer of wild cashews. Secondly, the demand factor also help India to have an absolute advantage over his competitors; if there is any. Lastly, the most important factor; labour force. The Indian workers were particularly skillful at the processing technology of cashew nuts.
The Indian labour force worked on making handicrafts at home as children and, as a result, by the time they were employed in cashew processing, could perform delicate hand operations efficiently.The cashew tree today is best known for its nuts, which account for about 20 percent of the value of nuts produced worldwide about equal to the value of almonds or hazelnuts.
U.S. imports of cashew nuts in totaled about $ million, about 60 percent of the world market and more than three.
What trade theories help to explain where cashew tree products have been produced historically? The primary theory that explains where cashew trees have been found historically is that of factor proportions.
What trade theories help to explain where cashews tree products have been produced historically?
-Mercantile efforts -Natural absolute advantage -Acquired absolute advantage -Factor proportion theories -Product life cycle -Dependency theory -Strategic trade policies. Download-Theses Mercredi 10 juin The cashew tree also produces an edible, pear-shaped fruit called the cashew apple.
The cashew apple, extremely rich in vitamin C, is eaten raw, as well as made into jam, marmalade, candy, and juices. The cashew, Anacardium occidentale, is a resilient and fast -growing evergreen tree that can grow to a height of 20 m (60 ft).
It belongs to the family Anacardiaceae, which also contai ns poison ivy and the mango.