INTERNATIONAL MARKET SELECTION.FINAL PROJECTTEAM: SOUTH AMERICA

Harry MendozaOscar PortilloCarlos CuevasMax UrzuaDilia Rojas

INTERNATIONAL MARKET SELECTION

INDEX

1. PRODUCT AND INDUSTRY DESCRIPTION

1.1 Research Objectives..31.2 Industry Description..31.3 Attributes and Characteristics of the Product and Service41.4 SWOT analysis61.5 Tariff Description in Mexico91.6 Main Product Exporters in the World...91.7 Main Product Importers in the World..111.8 Comparative Analysis of Exports and Imports of the Product in your Region and the World13

2. MAIN ECONOMIC MARKET CONDITIONS IN EACH COUNTRY OF THE REGION

2.1 Main Product Exporters by Region 162.2 Main Product Importers by Region.162.4 Main Macroeconomic Indicators GDP, inflation..172.5 Select three countries based on product economy variables.172.6 Conclusion of three countries .18

3. POLITICAL, LEGAL AND TRADE REGULATIONS: BY REGION

3.1 Tariff and Import Taxes..213.2 Tariff preferences.213.3 Non-Tariff Barriers...233.4 Select three countries based on legal and political variables.243.5 Market Selection Conclusions..25

4. CULTURAL CONSIDERATIONS

4.1 General characteristics...254.2 Demographic characteristics of selected country...274.3 Hofstedes Dimensions comparing Mexico to Target Countries.294.4 Negotiation Style...324.5 Family Income Distribution.33

5. CONCLUSIONS AND RECOMMENDATIONS

5.1. Country Selection Justification....34

6. BIBLIOGRAPHY......35

1. PRODUCT AND INDUSTRY DESCRIPTION

1.1 RESEARCH OBJECTIVES

General Objective:

Analyzing the opportunities to export Broccoli to the best countries of South America region based on the different economical, political and cultural information, from technique sources that helps this documents be suitable for any person or organization that may be interested.

Specific Objectives:

1. Selecting a market in South America by searching the economic and foreign trade variables for each country analyzed.2. Getting information about the tariff and non-tariff In the South American countries, which could be potential markets for the Mexican Broccoli.3. Showing statistics from reliable sources about the foreign trade activities with the selected product around the world.4. Having a wide knowledge about the different markets, which will be studied.5. Creating a comparative table that highlight the cultural difference between the Mexican consumer and South American consumer.

1.2 INDUSTRY DESCRIPTION

Broccoli is placed in the primary sector of the economy, taking into account that this product doesnt need a transformation to get a final product. Broccoli belongs to the agricultural sector what makes the operations easier, but at the same time delicate because it is perishable and it needs special care.

Mexico is the main exporter in the world, followed by Guatemala and Ecuador. Also Mexico is in the second place in terms of production, taking into account that United States is the one that tops the list.

Domestically, Guanajuato is the first producers of Broccoli in Mexico, taking into account that it has 90% of acres of all those that saw. Then, we can find Puebla, Queretaro, Aguascalientes y Zacatecas.

The total production nationally is the 40.000 acres of Broccoli from which Guanajuato is responsible for harvesting and distributing 38.000 acres; from which acre, if possible to get out from 12 to 15 tons. The cost of the box that has 9 kilos ranges from 3 to 8 dollars, leaving an income from 60.000 to 70.000 pesos by extension of land.From the Guanajuatense production, only 10% of Broccoli stays in the country for the domestic demand, while the rest is exported to different countries, placing United States as the main buyer, followed by Canada, Japan and some European countries.

EstadoSurface (acres)Production (tons)

SownHarvestedObtained

Guanajuato19.89012.479180.625

Puebla2.61995210.440

Queretaro4143345.778

Aguascalientes5814617.473

Zacatecas2312313.452

Source: www.siap.gob.mx.

In the table above, the states are ordered by surface sown. As we can notice, the state with the major level of production Is Guanajuato with 19.890 and a total production obtained of 180.625, then Puebla in the second place with a surface sown of 2.610 and a total production obtained of 10.440, then Queretaro with a surface sown of 414 and a production of 5.778, Aguascalientes with a sown of 581 and a production of 7.437, and finally Zacatecas with a surface sown of 231 and a production of 3,452, showing that Guanajuato is the leader not only in the sown but also in the production of Broccoli.

1.3 ATTRIBUTES AND CHARACTERISTICS OF THE PRODUCT OR SERVICE

Broccoli

The origin of Broccoli takes place in countries with template climates on the shores of the Mediterranean Sea, in the Middle East. The Anatolian peninsula, Lebanon or Syria would welcome the first specimens of this plant, from a wild species, very close to the cabbages and cauliflowers.

During the time of domain of the Roman Empire, this vegetable reached the Italic Peninsula where it was cultivated for consumption, becoming very popular in the transalpine country.But, it would be much later, in the mid twentieth century, when its production would develop in Europe.

Nowadays, it is grown in Europe, several Asian nations, which include Japan and in the United States and Mexico.

Characteristics

Broccoli has many edible fleshy green flower heads. It is very similar to its close relative cauliflowers, but it is green.It is a cool weather crop, so poorly thrives in hot summers.

Usually is prepared boiled or steam, but it may be eaten raw and it has become in a raw vegetable very popular as an appetizer.

Broccoli is high is vitamin c (100 g, contain 89,2 mg of vitamin C; 107% CDR) Vitamin E and soluble dietary fiber.

Benefits

Broccoli has caught the attention, more than any other vegetable, in the scientific world. The consumption of Broccoli acts in preventing diseases, especially cancer of the colon. In the nutrition field, Broccoli stands in the prevention of anemia due to its high iron content.

This vegetable gives also phytonutrients and several vitamin and minerals, including vitamin C and E, calcium, and as mentioned, iron.

Calories27

Fat