| Michael Porter's Diamond is used to show the positive and negative factors held by both Argentina and Uruguay in terms of investments in their beef systems. The Porter analysis suggests that while most elements are in place for these countries to have a competitive advantage in beef production, government intervention in the Argentine beef market creates significant uncertainty (chance) in that market. OLS regression sought to quantify the effects of government intervention in the marketplace and animal disease outbreaks for both absolute prices and relative prices compared to the US. The OLS analysis suggests that government intervention has had a significantly negative impact on cattle prices in Argentina while occasional animal disease outbreaks have been detrimental for cattle prices in both countries.;This dissertation found that among the strong factors for competitive advantage, government and chance cause great risk and uncertainty. Although, using vertical integration or strategic partnerships could help investors diversify against these risks and continue to be profitable. |
