Chile in Foreign Investment – The Sale of Cranberries

Motivations and factors that influenced Chile in foreign investment are several and have been discussed below. Cranberries are seasonal fruits. They were initially meant for thanksgiving purposes in the United States but later they became commercial. The demand was seasonal and therefore there was no market for the unsold berries after certain seasons of the year. This, therefore, called for diversification of sales to other countries apart from the United States. Cranberries were made into other products like juice and other cranberry products. These products could then be used at every time of the year as they were preserved. They could also be used to make sweet raisins. The sale of cranberries, therefore, made it rise and prosper well and hence ended up taking two-thirds of the market in the United States. Very many companies became interested and made products out of cranberries. Ocean Spray did most of the marketing for the product. It marketed them in the worldwide market. The US government also promoted exports of cranberries and its products. Several programs were developed to enhance exports (Katsioloudes & Hadjidakis, 2007).

The supply of cranberries was so sufficient and therefore it served both the large domestic and foreign products which increased foreign and foreign markets respectively. Because of this many farmers were interested in investing in cranberries. International hotels placed large orders of cranberries which led to large exports. Therefore the most motivating factor of cranberries is the growing international market. Another factor is the fact that cranberries were very helpful in cases of urinary tract infections. Cranberries have been made global in that it has popularized recipes. As production increased the demand in foreign markets also increased. This, therefore, increases the production of cranberries and therefore increases profitability. This also enhances the economy of the country.

The future of Cran Chile is greatly affected by the differences in environmental restrictions. In Northern America, there are several restrictions on cranberries, the land for growing them is very expensive and therefore the land becomes scarce. The land used for cultivation also becomes less fertile. This can then cause less yields on the berries. The land is so expensive and the taxes they are charged are also high. In Chile there is not much reception of the berries since people do no like the taste. Therefore the market in Chile is affected. This greatly affects the investment. Simmons is also worried of the market conditions and believed that he could make a lot of sales. But another problem is that most of the people from different parts of the world are not familiar with the fruits and they see it as the foreign (Hill, 2008).

Because of the regulations in the U.S., Chile faces a lot of frustration in production of the berries. The US agency has the responsibility of governing the wet lands used for the cultivation of the cranberries. This greatly affect Chile in tat t5ehre are so many regulation which restricts the investments. Environmentalists have also become more effective in Chile. There is a policy for governing their disposal of refuse in the rivers which are draining to the lands where berries are grown. Chile and so invest in wood pulp which helps to prevent this drainage of refuse. This therefore affects the marketing condition of the cranberries and hence influencing the investment in the growth of cranberries.

References

Hill, M. (2008). International Business. 7th ed. New York: McGraw-Hill/Irwin

Katsioloudes, M.I. & Hadjidakis, S. (2007). International business: a global perspective. New York: Butterworth-Heinemann