Reference no: EM132131258

Question - Brazil points to its shrimp-farming industry as an example of how it can export shrimp in the world market. One decade ago, Brazil exported a meager 400 tons of shrimp. Today, Brazil exports more than 58,000 tons of shrimp, with approximately one-third of that going to the United States. Brazilian shrimp farmers however, potentially face a new challenge in the upcoming years. The Southern Shrimp Alliance- a U.S. organization representing shrimps-producing countries is selling shrimp below "fair market value." The organization is calling for the United States to impose a 300 percent tariff on all shrimp entering the United States to impose a 300 percent tariff on all shrimps entering the United States' border. Brazilian producers and the other five countries named in the complaint counter that they have a natural competitive advantage such as lower labor costs, availability of cheap land, and a more favorable climate, resulting in a higher yield per acre and permitting three harvests per year. In what many see as a bold move, the American Seafood Distributors Association- an organization representing supermarkets, shrimp processors, and restaurants- has supported Brazilian and other foreign producers, arguing that it is the Southern Shrimp Alliance that it is engaging in unfair trade practices.

a) Describe the various rivalries depicted in this scenario (use examples from the case study above to validate your conclusion), and

b) Then use the five forces framework to analyze the industry.