StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Commodity Trade Questions - Essay Example

Comments (0) Cite this document
Summary
Name Institution Question 1 What is GAFTA and what does it mean on behalf of its members? According to (Abedini & Peridy, 2007 p.1), this is an agreement which was signed in 1997 among 14 Arab states. By signing this document, the 14 Arab states had a vision of achieving Greater Arab Free Trade Area by the 7th year of the new millennium…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91% of users find it useful
Commodity Trade Questions
Read Text Preview

Extract of sample "Commodity Trade Questions"

Download file to see previous pages The regulations were set at 40%. GAFTA is the only agreement that comprises of all the Arab states coming together to agree on trade relations. It was also guided by politic institutions which include the Gulf Cooperative Council and Arab League. It removes several walls that would have prevented an easy flow of trade which include the tariffs, monetary, administrative and NTBS. It has well defined rules from the routes of these communities. Benefits With this agreement, All the member states are expected to expand their intra-regional trade. Production is bound to increase since his agreement will encourage exploitation of comparative advantage and scale economies. With an increase in competition in the market, there will be a choice for consumers as companies are going to struggle and venture in other form of producing different products. Rules and regulations of trade will improve as import prices are going to go down. With GAFTA in effect, regional development is going to be noticed drastically. Question 2 How to reduce the risk for global commodity trader Since there is high profit expected in any global commodity trade, the risks are also high. According to (Williams, 1999), when one is involved in commodity trading, he is bound to lose more cash than what he takes to the bank. Always have a strategy to control some risks. If you have a valid risk plan, it will warn you when to indulge in the risk or run away. A global commodity trader should interpret all the risks involved in a business deal so that he does not get confused in the time of when to stay put or to run. Every commodity global trader should have established a specific price so as to prevent losses unlike when he does not have a stop price. If this trader has a stop price he is more likely to manage his losses and vice Versa. Risks due to language barriers can be solved with the presence of an interpreter or trading in the market where there is a language spoken in common. The trader should always make sure that he is trading with registered and incensed traders. He should upgrade his license every time it is required of him to avoid problems that may arise from it. It is up to the seller to determine where to deliver his goods. The place of trade should be a peaceful place free from war. He should be positively confident that the country he is trading in has a foreign currency. It is up to the seller to have the right quality and quantity of goods needed in the market foe efficiency. He should also learn about the markets he is involved in and try to understand them fully. This includes their terms and conditions. He should understand the culture of the particular people he is trading with and should avoid all corrupt deals as they are likely to backfire. Learn about all the governments you are involved in during trade and know their capabilities of them paying their debts. There are other markets that a global commodity trader can consider. According to (Cark, Lesourd, & Thieblemont, 2001) trading of commodities, markets may be physical or derivative. Question 3 What do the following ICC Inco terms stand for? According to (Moens & Gillis, 1998) EXW: this Inco term stands for EX Works/Ex factory. When doing business under the influence of this policy, the seller is supposed to make the products available to the buyer at the sellers’ business premise. It is up to the buyer to collect it. WWD: Weather Working Days. This means ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Commodity Trade Questions Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/business/1450676-commodity
(Commodity Trade Questions Essay Example | Topics and Well Written Essays - 1500 Words)
https://studentshare.org/business/1450676-commodity.
“Commodity Trade Questions Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/business/1450676-commodity.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Commodity Trade Questions

The Role of the World Trade Organization in Globalization

The protests according to the President of Mexico came from people who were either ignorant of the exact situation despite having a genuine concern and hence were swayed by emotions or by those who had become insecure in their jobs with globalization.
WTO claimed that the first charge was a misconception. It claimed that it opposed measures that use environmental protection as a guide for the protection of domestic industries against foreign competition and not to the measures to protect the environment as the allegations suggested. WTO debated that under its rules, environmental protection measures are prohibited only if those measures treat foreign producers more harshly than domestic producers. It was later found as seen i...
10 Pages (2500 words) Coursework

Anwering Three Questions of Philosophy

Basically, where he drew a comparison between the two, was by equating their attempt to explain concepts and constructs therein, by the use of numbers (Pythagoras) and ideas (Plato).

Aristotle believed that these were comparable in the sense, that these were arrangements of convenience, wherein additions or subtractions in the notions could be contrived at a theoretical convenience, just so that a link could be established amongst the theoretical construct originally proposed by them. Aristotle believed that Plato advocated the notion that forms (ideas) cause both existence and generation. On the other hand, Aristotle felt that Pythagoras supported the idea that numbers try to explain the connotation of the universe and...
7 Pages (1750 words) Assignment

Biology Data-based Questions

Potassium or K and Calcium or Ca has shown greater Mean Residence Time in rainforest chaparral when compared to temperate forests whereas Phosphorus or P demonstrates maximum variance in Mean Residence Time.

In general, plant productivity and Mean Residence Time are such that one increases whilst the other decreases. In subarctic regions, there is low plant productivity and greater Mean Residence Time.

In tropical forests, the mean residence time of nutrients is influenced by higher temperatures than in subarctic forests. Therefore, there is a vast difference in the MRT of nutrients pertaining to the tropical rainforest and the subarctic forest.

Nuclear fission weapons tests in 1961 released radioa...
10 Pages (2500 words) Assignment

Communitarian and Cosmopolitan Approaches to Questions of Justice

Cosmopolitan/Communitarian divide relates to a dispute on whether or not the state or the species stand in for the limit of human society. In Campbell’s distinguished definition, he explained justice as “like the pre-original, anarchic relation to the other, and akin to the undecidable. It represents the domain of the impossible and the unrepresentable that lies outside and beyond the limit of the possible and the representable.” (1994, p. 472)

In general, there are two contrasting positions in understanding international justice and intervention. In its universal sense, the two perspectives can be distinguished as a particularist and universalist. One perceives in a state-centric manner while the othe...
7 Pages (1750 words) Literature review

International Trade Theory

 Further to this, it is also believed that international trade can bring substantial economic welfare to the countries however still most of the countries do not view it as a favorable thing. Despite having a very promising and bright outlook, international trade has been largely viewed with suspension and it is because of this that governments impose barriers to restrict international trade. There can be many reasons behind this act of imposing restrictions or blocking international trade however there are also benefits on the other side too.

International trade has driven the attention of many of the brilliant minds in economics therefore the origins of the economic theory on international trade owe much to the c...
6 Pages (1500 words) Case Study

Air Pollution and Cardiovascular Disease: Bullish Business Long-Run Trade-Off

Increased concentrations of effluents in the air were found to have particularly been emitted from motor vehicle exhausts, industrial factories, and other burning or combustion activities of Australians (Bartnett et al. 2006). Practically, any engine that utilized fossil fuel is known to be emitters of these effluents in addition to other activities that require burning of materials as have been broadly argued by different concerned sectors for the minimization of its usage, as well, finding alternatives which could be biodegradable fuels.

Air is humankind’s natural source of respiratory Oxygen. Its preservation may have been openly disregarded so that the current generation has to face up to the maintenance of it...
12 Pages (3000 words) Term Paper

The Trade Union Movement in the UK

Before the ERA 1999, union membership and recognition in the UK were characterized by voluntarism, in which employers and employees could bargain over the terms and conditions of employment without any legal interference. With the statutory system ushered in by the new law, voluntary recognition of unions is no longer allowed and it becomes unlawful for British employers to deny recognition to unions under any circumstances. That conveys the impression that ERA created a radical change in British industrial relations. This paper takes the contrary view, however, and proposes that while the new industrial relations law looks revolutionary in principle, there are no fundamental changes in actuality for the change to qualify as &ldqu...
8 Pages (2000 words) Case Study

Potential Benefits of International Trade

... Content Outline I. Introduction (a) Definition (b) Background II. The Reason Why Countries Take Part in International Trade (a) Major Commodities in Today’s International Trade and Economic Gains Arising From it (b) Reasons Compelling Countries to Place Restrictions in International Trade III. Conclusion I. Introduction (a) Definition The expression international trade refers to an exchange of commodities across boundaries of nations. Two major terms are used to describe international trade (that’s imports and exports). Imports are services and goods bought from other countries while exports are the services and goods sold to nations or individuals of foreign countries. (b) Background It’s estimated that the international business...
6 Pages (1500 words) Coursework

Macroeconomics and Trade Policys

Keynes argued that prices and wages do not determine the level of employment, as many classical economists suggested, but instead the level of aggregate demand for goods and services (Case & Fair 683). Keynes realized as well during the Great Depression that the government could intervene in the economy to attain specific employment and output goals by either increasing or decreasing taxes and government spending.

For example, raising taxes will decrease the disposable income of households and thus effectively decreasing consumption. When the government decreases consumption, the household demand for goods and services decreases thus it would only seem reasonable that the amount of output that the economy would also...
7 Pages (1750 words) Article

Comparison of the Political Orientation of Trade Unions

Austria or you may call is the Republic of Austria in official terminology is located in Central Europe. Although the population figures do not touch the danger limit but the talent and resources are worthwhile there. Germany and Hungry are also near this region. Italy is in the south of Austria. Switzerland will be seen in the west. So, now you can realize the importance of this region clearly.
The GDP is also impressive here. You can say the economy is strong and it has much depth. The strong social market economy is the result of development and proper management by the government (DArt & Turner 2008). Traders find flexibility in business operations. Labor has a positive approach to work and jobs.
There was a tren...
9 Pages (2250 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Commodity Trade Questions for FREE!

Contact Us