Question

In: Economics

Societal and Cultural Impact on Avocados exported from Mexico and Imported from USA. Please cite sources...

Societal and Cultural Impact on Avocados exported from Mexico and Imported from USA. Please cite sources only journal article or books.

How has the import/export of the food affected the culture in each of the countries?

Which theory – cultural homogenization or hybridization – is most applicable? (There is no right or wrong answer – provided that you make a compelling argument.)

Who benefits from the import/export of the food? Who is most harmed?

Solutions

Expert Solution

Change in Culture of US & Mexico due to import of Avocados from Mexico:

Mexican Avocados were banned from import in US since 1914 due to pesticide issues. After NAFTA agreement, Avocados were allowed to import in US since 1997. Initially thought to be a small, the imports have grown manifold due to promotions and consumption habits. Statistics suggests that each person in US now consumes 2 kg Avocado per person, which was approximately 0.7 kg per person before NAFTA agreement.

In short, due to abundant quality supply, the consumption has grown over a period of time. We can say that consumption culture has grown in US, and production culture has grown in Mexico. Although Mexico is largest producer of Avocado and 85% of production is consumed in Mexico itself, it's still most profitable business to export Avocados. Due to recent threats from US for tarrifs, Mexican Avocados are going to newer markets such China, where they are getting more and more popular.

Cultural homogenization / hybridization?

Homogenization view, affirms that global culture is becoming standardized following the Western or American pattern. In this case, since the consumer country is US itself, it will have impact on the producers in California.

The hybridization thesis argues that cultures borrow and incorporate elements from each other, creating hybrid, or syncretic, forms. In this case, along with Mexico being exporter, it will adopt some US cultural habits along with good exports for maximization of their profits.

Thus hybridization theory is more compelling here rather homogenization.

Who benefits from the import/export of the food? Who is most harmed?

According to Adam Smith's "Wealth of Nations", we have understood that imports do not reduce or slow the economic growth, but it leads to faster economic growth and increased standard of living in both importing and exporting countries by fostering specialization and the transfer of technology. In the process, jobs are created in both countries and both enjoy higher standards of living. Thus both US and Mexico benefit from import of food.  

As imported Mexican avocados move from U.S. ports of entry to wholesalers, distributors, processors, supermarkets, restaurants, fast-food establishments, and elsewhere along the supply chain, they generate economic growth by stimulating economic activity within the avocado supply chain itself and, as a result, economic activity along associated supply chains with which the avocado import supply chain intersects.

Exports of avocados from Mexico produce jobs in their own country related to production and export chain of avocados.

The harmed persons may be Californian producers, as their monopoly / earlier import of avocados from Chile has been replaced by Mexican avocados, resulting into drop in prices, less income from similar production levels resulting into less inducement to produce the goods.


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