POSSIBILITIES OF INTERNATIONAL COMPETITION IN THE PRODUCTION OF CERTAIN HORTICULTURAL PRODUCTS

N. Krusze
Possibilities of transporting horticultural products thousands of kilometres create the opportunity for an increasing number of areas in the world of becoming part of the international division of labour in horticultural production. In the search for advantageous balance of payments in foreign trade, more and more countries would like to take advantage of their export opportunities. As a result import countries have an increasingly greater choice of suppliers. Many variant factors determine this choice: economics, politics, objectively measurable quality, subjective evaluation of these qualities, the esthetics of packaging, etc. Generally, one can say that our actual situation in regard to international trade of horticultural products is the resultant of the intersection of objectively existing possibilities and the subjective evaluation of these possibilities. In this labirynth of intersecting interests and points of view, the difficulty as to the choice of a scientifically motivated course of development of the international division of labour in the production of horticultural products is constantly increasing.

In this report only the more important factors will be discussed which influence the intensity of competition among producers of certain fruits and vegetables in various countries that import and export these crops. An attempt will be made to approach these matters primarily from the economic point of view. The entire problem of limitations and preferential treatment of imports resulting from political and trade alliances will be omitted from these deliberations. The question of the need for protecting domestic horticultural production will, however, be considered.

Examples will be selected primarily from countries belonging to three European groupings, i.e. Council for Mutual Economic Aid, the European Common Market and EFTA. Countries representing varying levels of overall economic development, varying demographic and soil-climatic conditions, varying social-economic forms of horticultural enterprises, etc., will be chosen for consideration. Data concerning the export and import of vegetables and fruits in these countries will be found in table 1. It is clear from this table that in northern Europe, Holland holds an exceptional position in playing a relatively large role in the export of horticultural products.

Among the many possible methods, the best one for determining the intensity of economic competition would be the comparison of production costs for individual articles. Ricardo's comparative costs would be useful in establishing a basis for an international division of labour from the point of view of the principles of economic development of each country. However, so far it has been impossible to obtain the production costs

Krusze, N. (1972). POSSIBILITIES OF INTERNATIONAL COMPETITION IN THE PRODUCTION OF CERTAIN HORTICULTURAL PRODUCTS. Acta Hortic. 25, 26-35
DOI: 10.17660/ActaHortic.1972.25.2
https://doi.org/10.17660/ActaHortic.1972.25.2
25_2
26-35

Acta Horticulturae