Commodity agreements
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This document discusses international commodity agreements which are intergovernmental arrangements to stabilize prices of primary commodities like coffee, tea, and sugar. It describes three types of agreements: 1) Quota agreements which regulate production and exports to prevent price falls through quotas. 2) Buffer stock agreements which stabilize prices by maintaining supply and demand balance through government stockpiling. 3) Bilateral/multilateral contracts where major exporters and importers agree to buy/sell certain quantities within an upper and lower price range. The objective is to stimulate developing country export earnings and consider interests of both producers and consumers.
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2. It describes how preferential trading agreements like NAFTA and the EU can create trade but also potentially divert existing trade away from more efficient non-member nations.
3. The median voter theorem and interest group theory are presented as political models to explain how trade policies are determined in democratic systems.The Impact of Trade Liberalization on International Trading Activity 
The Impact of Trade Liberalization on International Trading Activity HasithaKangara
油
The Impact of Trade Liberalization on International Trading Activity : an evaluation of legal and regulatory measures regulating international tradeMkt entry strategies
Mkt entry strategiesSharmaDudu
油
1. The document discusses several strategies for entering foreign markets, including exporting, piggybacking, countertrade, licensing, joint ventures, ownership, and export processing zones.
2. Countertrade involves indirect exporting where goods or services are exchanged instead of currency due to currency or trade barriers. It can take forms like barter, counterpurchase, compensation, and switch trading.
3. Licensing, joint ventures, and full foreign ownership represent increasing levels of commitment and control in foreign markets, with tradeoffs around costs, risks, and benefits.
Basics of commudity future
Basics of commudity futureankita sharma
油
Commodity trading has undergone tremendous changes,
from the barter system to spot markets to futures markets.
The major steps towards introduction of futures trading in
commodities were initiated in 2004 with the removal of
prohibition on futures trading in all recommended
commodities and the setting up of commodity exchanges at
the national level. Since then, the commodity future
markets have witnessed a rapid increase in trading volumes,
market participation and the number of commodities
traded. The commodity futures were initially permitted to
trade in agricultural products but nowadays bullion, metals
and energy products dominate the trading volume.
International business management
International business managementAshok Sharma
油
Regional integration involves countries entering agreements to increase cooperation through common rules and institutions. This can involve reducing trade barriers and increasing movement of goods, capital, labor and people across borders. Different types of regional integration include preferential trade agreements, free trade areas, customs unions, common markets, economic unions, and political unions. Regional integration is helping countries grow their trade by allowing for more commerce within the integrated region. The safest method of payment in international trade is a letter of credit, as it provides the highest level of security by making payment conditional on meeting terms specified in the letter of credit.International trade
International tradeMuhammad Faheem
油
This document provides an overview of international trade presented by five students. It discusses key topics like the definition of international trade, its importance, domestic trade, bases of international trade including absolute and comparative advantage, and protectionism. International trade is defined as the exchange of goods and services across borders, allowing for greater competition. It provides employment, goods/services, and paves the way for globalization. Countries should specialize based on comparative advantage to benefit from trade. Protectionist policies like tariffs and quotas can restrict trade.Chapter 5 exchange and international economics
Chapter 5 exchange and international economicsCrissy Almoite
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Principles of Economics
Submitted to: Prof. Tessie Sagadraca
Submitted by:
Mary Chris ALmoite
Rechilla Jean Cabiso
Alexander Maneclang
Daniel Valdez
IV-CCNA
University of Makati
Chapter 5 exchange and international economics
Chapter 5 exchange and international economicsCrissy Almoite
油
This document summarizes key concepts in exchange and international economics including barter, mercantilism, money, banking, central banking, foreign exchange, trade balances, inflation, and trade barriers. It defines important terms and provides overviews of economic theories like comparative advantage and the quantity theory of money. Graphs are included to illustrate concepts like demand-pull and cost-push inflation. The roles of institutions like the IMF, World Bank, and central banks like Bangko Sentral ng Pilipinas are outlined.International Economic Theories
International Economic Theoriesfathima habeeb
油
This document provides an overview of various international trade theories, including:
- Mercantilism, which holds that a positive trade balance increases a nation's wealth and advocates government intervention to encourage exports and discourage imports.
- Absolute advantage theory, which suggests that countries should produce and export goods they can produce with fewer resources than other nations.
- Comparative advantage theory, which argues that nations can benefit from trade even if they do not have an absolute advantage, as long as they have a comparative advantage in producing some goods at a lower opportunity cost.
Commodity agreements
- 1. Presented by, Karthik . R, PG Department of Commerce, 3rd sem M.com, Mysore.
- 2. Introduction: Commodity agreements are arrangements between producing and consuming countries to stabilise markets and raise average prices. Such agreements are common in many markets, including the market for coffee, tea, and sugar. Meaning: International Commodity Agreements which are inter- governmental arrangements concerning the production of & trade in, certain primary products with a view to stabilizing their prices.
- 3. The basic objective is to stimulating a dynamic & steady growth & ensuring reasonable predictability in the real export earnings of the developing countries so as to provide: Expanding the resources for economic & social development. Consider the interest of the consumers in importing countries Considering the remunerative & equitable & stable prices for primary commodities. Considering the import purchasing power Increased imports & consumption & also coordination of production & marketing policies
- 4. 1. Quota agreements: In international trade, a government- imposed limit on the quantity of goods and services that may be exported or imported over a specified period of time. Limits on the amount of a goods produced, imported, exported or offered for sale. International quota agreements seek to prevent a fall in commodity prices by regulating prices. This agreement undertake to restrict the export or production by a certain percentage of the basic quota decided by the Central Committee or Council. This type of agreement mostly in the case of the commodities like coffee, tea & sugar This agreement avoids accumulation of stocks require no financing & do not call for continuous operating decisions.
- 5. 2. Buffer Stock Agreements: A practice in which a large investor, especially a government, buys large quantities of commodities during periods of high supply and stores them so they do not trade or circulate. The investor then sells them when supply is low. This is done to stabilize the price. It is to stabilizing the prices by maintaining the demand & supply balance. It is more useful for the commodities like tea, sugar rubber, copper. This arrangements only for those products which can be stored at relatively low cost without the danger of deterioration & this is one of the limitation of this agreement.
- 6. 3.Bilateral or Multilateral Contracts: Bilateral agreements may be formed as business or personal agreements between individuals or companies. They may also be formed between sovereign countries in the form of trade agreements or agreements in other areas. In either case, a bilateral agreement is a binding contract between the two parties that have agreed to mutually acceptable terms. International sale & purchase contracts may also be entered into by two or more major exporters & importers. Bilateral contract to purchase & sell certain quantities of a commodity at agreed prices. In this agreement, an upper price & a lower price are specified.
- 7. If the market price, throughout the period of the agreement, remains within these specified limits the agreement becomes inoperative. If the market price rises above the upper limit specified, the exporter country is obliged to sell to the importing country a certain specified quantity of the upper price fixed by the agreement. On the other hand, if the market price falls below the lower limit specified, the importer is obliged to purchase the contracted quantity at the specified lower price.