This case is aboutÂ INTERNATIONAL BUSINESS
PUBLICATION DATE: July 30, 1997
Shrimp Farming in EcuadorÂ Case Solution
In 1997, Xavier Kayser ran an extensive shrimp farming company in Ecuador. He’d introduced several significant technological advances in order to defeat the susceptibility of shrimp to disease, a problem blighting shrimp farms in Asia. The shrimp worth chain consisted of many activities that culminated in the preparation of a broad variety of dinners and frozen appetizers. Meanwhile, collective consumption of shrimp related products grew rapidly all over the world.
A joint venture might offer benefits to a foreign corporation and both Xavier. This case raises issues of issue from the perspective of both potential partners. Ecuador had only recently seen a a political upheaval and thus, interest rates and foreign exchange rates were unstable, extremely high interest rates were being charged by financial institutions in Ecuador, and labor unrest caused fear of work stoppages. In such a quickly changing business environment should Xavier strategy for his economic future?