Read the article below regarding investment in the cotton industry in Africa, and answer the following questions.
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 Porter’s diamond.
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 P’s – 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.)