International business final exam Assignment Example | Topics and Well Written Essays - 750 words

International business final exam - Assignment Example Thus after being empowered these farmers are able to produce a lot of cotton more than they could have done before at relatively cheaper prices. There is thus much gain from the sustained income that the farmer is able to get which enables them to start small enterprises such as groceries. In some countries such as Uganda, a lot of gains have been realize even with small and basic improvements such as training farmers on the use of fertilizers, pesticides and tractors. These foreign owned enterprises also provide capital in form of loans so as to help in the expansion of production, in Zambia for instance, Dunavant has been lending to farmers millions of dollars every year to farmers at the beginning of every growing season. The farmers usually return the loans at harvest time. This aspect of lending to farmers has made Dunavant the largest micro financier in Africa. In return, Dunavant is able to get interest from the loans offered, has a chance of getting a constant and uninterrupted supplies of cotton for its factories ensuring there is streamlined production. Thus African cotton is profitable for Dunavant and also an intelligent hedge against any fall in American production. The other advantage reaped by Dunavant is the fact that the African cotton is usually produced with lower costs for both land and labor. And with the ongoing discussions by the Senate about the removal of subsidies for the American farmers, it means that the price of the A frican cotton will become more and more attractive and competitive. The fact that Dunavant has managed to establish loyal farmers in Africa, means that they have true business partners in them, which is a very important for any business to thrive and make profits. Dunavant willingness to pay farmers cash on delivery has also endeared them to the farmers, since money is scarce for most