Answered: Outline the risks faced by agricultural…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Outline the risks faced by agricultural producers and the methods of managing these risks.

1. Which of the following methods does not help reduce production risks?

a. buy disease-resistant seed varieties

b. select stable enterprises

c. Invest in excess machinery capacity

d. sell crops to a farmers market

e. diversify crops and/or business

2. Which of the following methods does not help reduce marketing risks?

prepare a marketing plan

Stockpile production inputs

know your competitors

recognize comparative marketing advantage

integrate vertically to ensure a market or form marketing alliance

3. Which of the following method does not help reduce risk in financial decisions?

expand markets for your production

develop a realistic financial plan

improve the record-keeping system to increase credit availability

invest in fewer risky enterprises

Use fixed-interest rate loans

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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