Question

In: Economics

Globization prospectus on avocados. Exported from Mexico and imported to USA. Where is the food produced...

Globization prospectus on avocados. Exported from Mexico and imported to USA.

Where is the food produced now? How much does it cost in USD? Which countries consume the item? Where are the respective countries located (e.g., in the global North/South)? Why is a country’s location significant? Who benefits from the import/export of the food? Who is most harmed? How has the import/export of the food affected different groups/local communities in each of the countries?

Solutions

Expert Solution

Price of avocado is $1.17 per avocado and the price has increased by 28 cents per avocado in the last 10 month.

Countires which consume avocado are United States , Netherlands, France, United Kingdom, China, Mexico, Germany, Japan, Spain, Australia. Mostly countries in Europe and North America consume the most avocado. Barring Australia countries in Northern Hemishpere are the main consumer with European continent consuming the largest quantity in terms of continents. Mexico is the largest producer of Avocados and mainly caters the United States. European nations such as Netherlands mainly import avocados from countries such as Peru. Geographical proximity between countried importing and exporting are of extreme importance as lesser distance reduces price of transportation and helps in the importing countries receive fresher price of avocados. Farmers growing avocados have tremendously benefitted from the price surge in avocados as prices have surged over 125% in the last 2 years. Tremendous price increase have encouraged farmers to increase production area leading to large scale deforestation in countries such as Mexico causing a great harm to environment. Slowly the avocado orchards are encoaching forests. Many communities that rely on the lake water may already be suffering from the effects of chemical runoff from the chemicals used in avocados orchards. Tribes and local communities living on the fringes are the worst sufferrs of mindless expansion of avocados orchards into forests.


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