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ANSWERS TO CASE QUESTIONS
PART 1
Super Foods: Camu Camu in Peru
1. If no immediate change regarding the Novel Food Regulation (EU) is foreseen, what could
be an alternate use of camu camu?
Camu camu, a small tree or shrub that grows in the Amazon regions of Peru, is considered
2. What brand strategy is Navitas following to “adapt” camu camu to the U.S. market?
Navitas is capitalizing on the potential of camu camu as a “super–fruit.” Navitas added
3. Would you recommend that Peru use the same brand strategy Navitas is using in the U.S.
and in other international markets?
This question will be good for class discussion with students having different view-points.
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4. Amazon Herbs follows in the U.S. camu camu. Would you recommend this strategy to
other American importers of camu camu?
5. What international marketing strategy would you recommend to Peru in order to promote
camu camu in the North American market?
This question will be good for class discussion as many students will have different
opinions about what Peru should do. When entering the U.S., Peru will need to get
African Producers in the Cut Flower and Foliage Trade
1. One of the challenges for African flower and foliage producers is the need to ensure that
the products reach the final consumers in good quality. Must they then produce and market
their own products that are more tolerant to the stresses of long shipping or continue to
produce traditional European flowers which are difficult and expensive to transport?
The main market for cut flowers and foliage from Africa is the European Union, as it is for
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2. What types of upgrading can producers in Africa conveniently adopt to ensure increased
recognition and participation in the floriculture chain?
Cut flowers are highly perishable and very quickly lose their usefulness if they are not
handled properly. The chain process is therefore marked by a highly efficient coordination
3. How much value does the agent or distributor add to a bouquet of flowers or bunch of
roses from Africa before it reaches the final consumers? How can this be accurately
calculated to ensure fair prices to the men and women who work on flower farms in
Africa?
Cut flowers are highly perishable and very quickly lose their usefulness if their production
and handling is not properly done. The chain process is therefore marked by a highly
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4. Knowing that flower production depends on availability of water, how long can the water
bodies in Africa continue to feed flower production and still have enough for human
consumption and, importantly, remain unpolluted?
This question will be good for class discussion as students will have different opinions.
Students have to keep the following facts in mind while answering this question:
Of Catfish and Shrimp: A Dispute between Vietnam and the United States
1. Was it fair for the Vietnamese catfish importers to step in and capture market share while
the market has been expanded due to the significant efforts and investments of the
domestic industry? How should quality considerations (if quality differences exist) be
reconciled?
The idea of free trade assumes that no matter the methods employed to expand markets,
there must be no barriers to market entry and trade. If the domestic industry is competitive,
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2. The label regulation that prevented Vietnamese fish from being called catfish would
probably make consumers pay a higher price than they would have paid otherwise. Is this
right?
Most of the neoclassical school economists agree that barriers to free trade always hurt
consumer interests in the long run. There are cases, however, when the introduction of at
3. Can any industry in the United States influence lawmakers to take decisions in its favor?
As the experience with steel and catfish shows, United States politics can be significantly
influenced by domestic industry interests, which is especially true under the conditions of a
weakening economy. After being organized, industry representatives can find ways to
4. Did the WTO membership of Vietnam play any role in the different disputes?
The WTO was originally formed following the General Agreement on Tariffs and Trade
(GATT) with the intention to reduce tariffs on international trade. Eventually, however,
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After a series of meetings held by the panel, the WTO judges gave a final ruling on July
11, 2011. They decided that the U.S. was violating the Anti-Dumping Agreement and the
GATT, both of which were established in 1994. Specifically, the panel recognized that the
U.S. was practicing zeroing methodology and turned to previous rulings by the WTO to
conclude that zeroing was indeed defying several provisions developed in past
antidumping conflicts. On September 2, 2011, the Dispute Settlement Body (DSB)
officially approved the final ruling mad by the panel on the Vietnamese lawsuit against the
U.S.
IKEA: A Better Everyday Life
1. What has allowed IKEA to be successful with a relatively standardized product and
product line in a business with strong cultural influence? Did adaptations to this strategy in
the North American market constitute a defeat to its approach?
The IKEA case shows that consumers with low status concern, low conservatism, low
dogmatism, high education, white-collar workers, and also high-income groups have fewer
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2. Which features of the “young people of all ages” are universal and can be exploited by a
global/regional strategy?
IKEA has described its target market as “young people of all ages.” The market segment in
foreign markets are those individuals and families for whom prices are more important
3. Is IKEA destined to succeed everywhere it cares to establish itself?
Judging by IKEA’s performance and expansion since the 1980s, it is difficult to argue
against this proposition. Although the desire for economical prices for quality furniture is
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4. IKEA Social Initiative was formed to manage the company’s social involvements on a
global level. Why?
IKEA’s Social Initiative was formed in 2005 to promote the rights of every child to a
healthy, secure childhood and access to quality education. As part of the Initiative, IKEA