You are sales manager of a fertilizer company desperate to boost sales by offering heavy discounts on
Question:
You are sales manager of a fertilizer company desperate to boost sales by offering heavy discounts on fertilizers to overcome negative perceptions created in the stock market by declining sales. You have a large consignment of fertilizers lying at the warehouse that will be expiring soon, and have to decide whether to ship it to either country-A or country-B (Hint: apply the iso-profit model to develop your answer).
Country-A: Farmers in Country-A use high levels of fertilizers in growing a given crop XYZ.
Country-B: Farmers in Country-B use low levels of fertilizers in growing a given crop XYZ.
You may assume that the soil quality and farming methods are identical in Country-A and Country B. Due to geopolitical tensions, there is no trade in the crop XYZ, an important food security crop. Both countries will be offered identical discounted prices, but due to the high shipping costs, you can only ship to one country. All unsold fertilizer bags will be destroyed due to high shipping costs (or you may assume they will expire if not sold in the country you shipped to).