Hawaii Produces a Small but Increasing Amount of Cacao Beans

question 175

Multiple Choice

Hawaii produces a small but increasing amount of cacao beans each year even though the cost of production is much higher than it is in Ivory Coast, where a significant portion of the world's cacao beans are produced annually. Which statement is an explanation of how the industry in Hawaii might be able to succeed?

• A) Ivory Coast could impose high tariffs against cacao imports from Hawaii.
• B) Ivory Coast could impose strict import quotas against imported cacao beans.
• C) Hawaii could persuade its trade partners to impose import quotas against imported cacao beans.
• D) Hawaii could market its cacao beans as a higher quality bean, effectively selling them in a separate world cacao bean market at a higher price than would prevail in what would be perceived as a separate world market for a lower-quality Ivory Coast cacao bean with a lower equilibrium price.

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