Question

An agribusiness investor is weighing viable investment options. Which of the following opportunities would a financial adviser be LEAST likely to recommend based on market conditions?
I. Selling cattle to nomadic farmers in Eastern Africa
II. Selling drought-resistant seeds to farmers in Bangladesh
III. Investing in wine-producing grapes in southern Pakistan
IV. Investing in animal waste treatment facilities near industrial feedlots


I and II

II and III

I, II, and III

II, III, and IV

Answer 1

The answer is I, II and III.
A financial adviser would not recommend these three options because:
- Selling cattle to nomadic farmers in East Africa is a bad idea because they are very poor and can not afford to buy cattle, but instead reproduce the once they have, plus they only have enough cattle for their own needs, not big herds.
- Selling drought resistant seeds in Bangladesh makes no sense since the country has more than enough precipitation.
- Investing in wine producing grapes in southern Pakistan is not recommendable because in the period when the grapes are harvested there's intense rainfall caused by the monsoons, and also very often this region is flood in this period.