1. a) According to the theory of comparative advantage, a country should produce products where it is efficient at producing in large quantities. India is one of the world's leading producers and also the largest exporter of cashew nuts. In the year 2011, India exported around 145,000 tonnes, earning a sum of 0.92 billion US dollars. Now India has a cashew cultivation area of nearly 1 million hectares and accounts for 65% of the entire world cashew exporter. Since India was the major producer of cashew nuts, it had an advantage over other countries, thus providing an absolute advantage over everyone. Even now India is one of the leading producers of cashew nuts in the world and is only behind the world's largest producer, Nigeria, and will soon reach the top again in the next few years. So this theory is suitable for the case when we talk about cashew. b) According to the Heckscher-Ohlin theory it is said that "comparative advantage derives from differences in national factor endowments". Factor endowments are basically classified into four resources such as land, labor, capital and energy. He also stated that the country having any of the factors in abundance should be produced in large quantities, thus reducing the cost of the production process. The country should import the products it is not good at. According to this theory, the case states that India had the most skilled labor and agricultural area compared to many other countries in the world. India led the race from the year 1920 to 1970. At that time Brazil and some African countries joined the race along with India but they could not compete with the standard of skilled manpower compared to India. Other countries have used machinery......means of paper......implemented to supply the efficient and large quantity of cashews produced in the country. Since growing involves both nut and fruit, I would consider focusing on fruit if the job doesn't suit nut production. It is also said that the fruit can be used mainly in commercial production such as candies, jams, chutneys, juices, carbonated drinks, syrups, wine and vinegar. It can be used in another area by using the walnut shell in the process of producing oil from it. It was once considered a waste product, but now it would be declared suitable for the realization of the project. The oil produced can be used for friction in brake linings and clutch linings. By increasing production, cashew nut production would help in oil production as it would require a large amount of nut shells to carry out the process.
tags