Question: A large U.S. company operates highly efficient cane sugar production facilities in Louisiana and Florida. Consideration of variable costs, the very low income of residents

A large U.S. company operates highly efficient cane sugar production facilities in Louisiana and Florida. Consideration of variable costs, the very low income of residents of the country of Guatemala, and the high prices of sugar produced by domestic Guatemalan sugar suppliers has indicated a very low best price for the company’s sugar sold in Guatemala (lower than the price charged to U.S. customers). Why might it be impractical for the company to set such a low sugar price to Guatemalan customers?

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