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  • Globalization, Localization and Cashew

    Jun 26th, 2012

    <p></p><p>Cashew industry needs a reconciliation between globalization and localization. In the globalized economy, when the exporting nation devalues its currency, prices also come down unless there is a real shortage. &nbsp;Almost all currencies now follow the globalized currency market. Both Rupee and Real move with the world Forex but the percentage of change between these two currencies is not same, i.e, globalization is not the same due to some differences in the procedure or stages towards the capital account convertibility. So, the downward trend gets influenced by local factors, i.e, in India, the domestic consumption of cashew kernel is the biggest market influencing factor.</p> <p>Vietnam’s problem is totally different as the timing of their currency devaluation is not in accordance with the global economy. Whenever Vietnam devalues Dong, kernel prices come down immediately and Indians and Brazilians also suffer unnecessary and unexpected losses and when India and Brazil depreciate their currency, prices once again move downwards and the Vietnamese cashew industry becomes helpless. </p><p>&nbsp;</p><br><p></p>


    Source: worldcashew.com
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