Cream -> Danish
Danish Ice Cream
Andersen's of Denmark
Ice Cream was actually first established outside
Denmark in Solvang, California in 1978 under the name of The
Great Danish Cone Company. The Danish Founders based their
presentation about around the original Danish ice
cream cone maker, manufactured by their family's
traditional good recipes, dating back more than three generations.
Their concept was brought
in Australia in 1982 and Singapore in 1989. After a few years
of operation, the company realized the great growth potential
for the business. Thus, during 1994, a joint venture commenced
between Andersen's of Denmark Holdings and Become Holdings
to start the franchise system for international expansion.
A situation in which a country,
individual, company or region may produce a good at a lower
opportunity cost than of a powerful competitor.
Investopedia Says: Let's break
this down into a simple example. You could have two firms
that both produce two main products:
ice cream and the bicycles.
The first firm, The Danish Ice Cream and Bicycle Co., is both
located in Denmark, where dairy milk is abundant; the second
firm, The Gobi Ice Cream and the Bicycle Co., is smack in
the middle of the Gobi Desert.
Gobi Ice Cream and Bicycle Co. should expend
a lot of money to make ice cream, whereas The Danish Ice Cream
and the Bicycle Co. spend way less to produce the same amount.
The two firms are totally dead even in their production costs
Since The Danish Ice Cream
and Bicycle Co. have a comparative advantage with the ice-cream
production, it should probably consider turning exclusively
to ice cream. Along the same vein, The Gobi Ice Cream and
Bicycle Co. should probably give up the ice cream and focus
on the product in which it is the least disadvantaged.