Read the case The Growing Trade in Growing Grapes and prepare your composition
Read the case, The Growing Trade in Growing Grapes (P.180-181). Prepare your composition to cover the following topics or questions with in the Body section of the paper described for this assignment:
Both Old World vineyards and New World vineyards compete in the global market place. What are the competitive advantages and disadvantages of the Old World vineyards? Of the New World vineyards?
Why are French wines able to command a price premium in export markets?
Should the French government relax its AOC system, allowing French vintners to expand the size of their chateâux to capture economies of scale? Why or why not?
Should the U.S. government adopt an AOC system to ensure the quality of U.S. wines destined for export markets?
“Bottle shops”—small retail outlets specializing in selling fine wines—might purchase a case or two of a specific wine when placing an order. (A case typically consists of a dozen 750-milliliter bottles.) Buyers for large multistore firms such as Tesco or Walmart often order thousands of cases at a time. Which type of retailer is likely to specialize in Old World wines? In New World Wines? Give a reason for your answer.
How do modern firm based theories of international trade apply to this case?
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