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Redesigning the Food Chain: Trade, Investment and Strategic Alliances in the Orange Juice Industry

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Author Info

  • Azevedo, Paulo Furquim de
  • Chaddad, Fabio Ribas

Abstract

Change in trade barriers and capital flow creates opportunities for redesigning the food chain. The orange juice chain in U.S. and Brazil provides an interesting illustration of how institutional harmonization, high import tariff rates and complementary capabilities open new opportunities for strategic alliances and the re-arrangement in the FCOJ chain. This finding has the following implications. First, trade barriers are not enough to support FDI and related internationalization decisions. Second, the perspective of market integration creates a positive environment for new strategic alliances and the re-design of the food chain. And third, the existence of complementary capabilities between foreign and domestic companies is a necessary condition for this type of supply chain re-arrangement.

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File URL: http://purl.umn.edu/8212
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Bibliographic Info

Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

Volume (Year): 09 (2006)
Issue (Month): 01 ()
Pages:

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Handle: RePEc:ags:ifaamr:8212

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Related research

Keywords: FTAA; foreign direct investment; Orange Juice Industry; strategic alliances; Agribusiness;

References

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  1. Harris, James Michael & Kaufman, Phillip R. & Martinez, Stephen W. & Price, Charlene C., 2002. "The U.S. Food Marketing System, 2002: Competition, Coordination, And Technological Innovations Into The 21st Century," Agricultural Economics Reports 34001, United States Department of Agriculture, Economic Research Service.
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Cited by:
  1. Uzea, F. Nicoleta & Fulton, Murray E., 2014. "Mechanisms for Effective Alliance Management: Insights from a Federated Cooperative Marketing System," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 17(1).

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