Assignment, Macro & Micro economics

Assignment, Macro & Micro economics

One commodity on a worldwide basis, discussing supply, demand, price history, market structure, major events, and so on.

Project description

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.

Economics 213

Section

A

1

First Assignment

Fall

2013

Scott Beesley

This assignment is due

(on paper

AND via email

see below!

)

by the end of the Monday, October

2

8

class.

Note that

email

only”

copies received by the deadline lose 10%. See below for the general late

penalties.

It represents 15% of the course.

This small essay has a limit of

9

00 words. I would like you to take a look at one

commodity

on a

worl

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

5

words.

Because ma

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

within

OECD

countr

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

,

market power,

and trade barriers

affect

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

some

low

income

countries

as a supplier

s

(e.g. Nigeria

, Angola, Ghana,

) or buyer

s

(many LDCs need to import oil).

You co

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

commodities

! If in doubt about a topic, ask me!

A

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

the market.

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

ght,

another 25% comes off (so an 80% pa

per received anytime on October 29

gets a net 40%, for

example).

At midnight

at the end of

the 29

th

, the deduction becom

es 75%,

and finally at the end of the 30

th

,

no

credit is given.

These penalties will be

strictly enforced!!

Last Updated on February 11, 2019 by EssayPro