Soybeans
Why is the demand for soybeans increasing? Increasing population Demand for meat, esp. in EEs Analog products Biofuel Uses in industrial production ¤ http://www.themorningsun.com/article/MS/20161007/NEWS/161009730
Why is Brazil a good destination for FDI? Natural resources Arable land, labor supply, consumer mkt Tropical climate Multiple crops/yr= higher yield Demand for ag inputs Room for growth in food sector ¤ http://www.cherrycrestfarm.com/The-Amazing-Fun-Time-Blog/8-Fun-Facts-About- Soybeans/
Why is Brazil a good destination for FDI? (cont.) Stable democracy < fear of nationalization Transparency Ease of doing business Financial incentives Fiscal policies, tax incentives, low-risk US, China access to EU mkt Lax sewage laws ¤ http://www.cherrycrestfarm.com/The-Amazing-Fun-Time-Blog/8-Fun- Facts-About-Soybeans/
What advantages does Brazil have over the U.S. as a soybean producer? Infrastructure Streamlined v. scattered ¤ https://qz.com/124693/which-country-will-be-crowned-this-years-soybean-king-ask-mother-nature-and-china/
What role do subsidies play in global production of soybeans? Interfere with trade Give GN advantage US, EU, Japan Crop insurance MNCs benefit most Overproduction in U.S. ↑ value-added foods changed diets ¤
What concerns have been raised regarding increased soybean production in Brazil? Environmental Amazon v. cerrados BR’s changes in 1990s MNCs play to consumers GMOs Land ownership issues Leasing Outright sale Land rights/reform ¤ https://www.extension.iastate.edu/agdm/articles/leibold/LeibSept01.htm
¤ What soybean issues relate to II & IF?/ Recap What FDI involves What MNCs look for as good destinations Incentives states offer Why EEs draw more FDI Brazil Big economy Big population, esp. young ↑ consumer class Resource rich ¤