Assignment, Macro & Micro economics
One commodity on a worldwide basis, discussing supply, demand, price history, market structure, major events, and so on.
My prof would like you to take a look at one commodity on a worldwide basis, discussing supply, demand, price history, market structure, major events, and so on. Use a few diagrams – clearly a price chart or table, and the same for volume, would be very useful.
This assignment is due
AND via email
by the end of the Monday, October
copies received by the deadline lose 10%. See below for the general late
It represents 15% of the course.
This small essay has a limit of
00 words. I would like you to take a look at one
dwide basis, discussing supply, demand, price history, market structure, major events, and so on.
Feel free to use a few diagrams
clearly a price chart or table, and the same for volume, would be very
useful. Consider a diagram as 1
ny people have gone well over the word limit in
the past, I want you to send me a Word copy of your paper, in addition to the paper copy you will hand
in in class.
If your word count is 1150, for example, then I will multiply your gross mark by 900/1150.
So don’t go over the limit!!
The bibliography does not count towards the limit, whether you put it all in
a list at the back, or stick the references into footnotes. Do not put actual content into the footnotes,
either, as I will disregard it in marking.
Many developing countries are dependent on
a small number of commodities for their foreign exchange
earnings. If the developed world exercises market power in the purchase of a commodity, then the
poorer countries are obviously harmed.
Conversely, it is
possible, at least in theory, for the sellers to
form cartels in the manner of OPEC. To my knowledge, however, such attempts have not succeeded.
Even OPEC failed repeatedly, until 1999 onward.
Note that while such actions are illegal
ies, there is no such law across countries (not that we always stop oil company or bank collusion
in any case!). See if you can identify any specific actions that would theoretically be forbidden, if
antitrust law applied internationally.
Please list th
e major suppliers and purchasers, note any formal selling or buying groups, and describe
how concentrated the industry is on each side. Find out whether the industry is significantly affected by
tariff and non
tariff trade barriers
, price caps, subsidies,
etc. You might wish to note any technological
factors that have affected the market for your commodity.
The idea is to consider how commodity price and volume issues
and trade barriers
the poorer countries we are studying in this
course. Therefore, if you cover something like oil, where
many suppliers can hardly be called low
income nations, then please focus on
as a supplier
, Angola, Ghana,
) or buyer
(many LDCs need to import oil).
uld cover any of a wide range of agricultural or mineral commodities, or even fish and livestock.
Try to find price and volume in
formation for at least 20 years
Manufactured goods, or services, are not
! If in doubt about a topic, ask me!
commodity will be standardized, traded on
exchanges or in private markets, traded worldwide, etc
. Gold is a commodity, gold jewelry is not!
Finally, make any suggestions you can as to how the commodity sellers might improve their position in
You could also suggest policies that might be voluntarily undertaken in the OECD countries,
and other big resource importers like China, to help the LDCs.
Papers received after the end of class lose 25%
of whatever their gross mark amounts to
. At midni
another 25% comes off (so an 80% pa
per received anytime on October 29
gets a net 40%, for
at the end of
, the deduction becom
and finally at the end of the 30
credit is given.
These penalties will be
Last Updated on February 11, 2019 by EssayPro