Reference no: EM131905179

Problem

Brazil points to its shrimp-farming industry as an example of how it can com-pete in world markets. One decade ago, Brazil exported a meager 400 tons ofshrimp. Today, Brazil exports more than 58,000 tons of shrimp, with approxi-mately one-third of that going to the United States. Brazilian shrimp farmers,however, potentially face a new challenge in the upcoming years. TheSouthern Shrimp Alliance-a U.S. organization representing shrimpers-fileda dumping complaint alleging that Brazil and five other shrimp-producingcountries are selling shrimp below "fair market value." The organization iscalling for the United States to impose a 300 percent tariff on all shrimp enter-ing the United States'borders. Brazilian producers and the other five countriesnamed in the complaint counter that they have a natural competitive advan-tage such as lower labor costs, availability of cheap land, and a more favor-able climate, resulting in a higher yield per acre and permitting three harvestsper year. In what many see as a bold move, the American Seafood DistributorsAssociation-an organization representing supermarkets, shrimp processors,and restaurants-has supported Brazilian and other foreign producers, arguingthat it is the Southern Shrimp Alliance that is engaging in unfair trade prac-tices. Describe the various rivalries depicted in this scenario, and then use thefive forces framework to analyze the industry.