A comparison of cotton production costs - Australia versus the US
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The comparative advantage of cotton production was examined for three production systems in the United States and four production systems within Australia. Operating expenses, income, operating margin and rrzachinery fixed costs are presented. Taxt social structure, subsidies and capital investment differen ,Js are also discussed. Sensitivity analysis was conducted varying the exchange rate and crop yields. Conclusions were drawn on the competitive advantages of investing in cotton production in Australia versus the US.