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log 3 - are being put on each gallon of Brazilian ethanol...

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Michelle Abbott 810803787 BCOR-1010-113 Mr. Junqueira Franco is the founder of a mill that crunches sugar cane into sugar and ethanol which has significantly boomed in production in the last 5 years. With a current $775 million bid for his company, he is sure that he will never sell his land or company. With his domination in the market, many big foreign companies are unable to compete, forcing them to develop their own projects from scratch. The conduct that this ethanol producing company is partaking in is that similar to a monopoly. By providing so much of Brazil’s ethanol, it is preventing other companies from succeeding in the market. Without as much government intervention as in the United States, this company continues to compete comfortably with even costly oil prices. Even though import tariffs of 50 cents
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Unformatted text preview: are being put on each gallon of Brazilian ethanol into the United States, Brazil is still able to dominate other markets in Asia and Europe. I believe that while this company is trying to expand and improve their company, the effect that they are having on competing companies is not allowing the country to have a competitive market. The monopoly that they are beginning to create does not create equal opportunity for other people. While the idea of expanding production and globalization in becoming the world’s ethanol supplier is in favor for this specific company, it is not good for the economy as a whole, and those who are affected by it. Fan, Grace; and Regalado, Antonio. (2007 September 10). Ethanol Giants Struggle To Crack Brazil Market. Wall Street Journal pp. A1, A13...
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