Abstract
The analysis revealed incentives for foreign direct investment (FDI) for the US fruit and vegetable industry. A relationship was found between US tariffs on fruits and vegetables and FDI by US produce firms in Latin America. Other factors affecting FDI were also investigated. The analysis revealed that a majority of the commodities produced as a result of FDI by US fruit and vegetable firms were exported to the United States. Significant implications for the US market in light of trade agreements such as NAFTA are presented. These implications include the likelihood of increased FDI and a more globally oriented marketplace for the US fruit and vegetable industry. © 1998 John Wiley & Sons, Inc.
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