Economics Homework Help

Founded in 1937, Westland Milk Products in New Zealand is a leading independent co-operative dairy company, owned by over 425 farmer shareholders that supply milk for processing. In the video we watched, it was evident that Westland had started as a small independent dairy farm and has grown into a significant competitor within that industry. Most significantly, Westland has expanded their product offerings from simple dairy products to include nutritional supplements made from dairy processing.

Discuss the sources of comparative advantage that would have led to the original success of the Westland Milk Products company. How did sources of comparative change over time and how did that likely influence the plans for Westland’s production? Can you relate this to any other industries in China in a similar way?

A Land Apart – Westland Milk Products (14:37)

This video highlights Westland’s Dairy unique ability to both capitalize upon sources of comparative advantage and to create shifts in comparative advantage.