GEOG 216 Lecture Notes - Lecture 33: Dalian Commodity Exchange, London Metal Exchange, Chicago Mercantile Exchange
15 May 2016
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Document Summary
Conventional economic approaches: nature as simple commodity o. Some criticisms and alternative approaches: commodity chain analysis. Environment-economy interface i: commodification of nature and its ownership (input: nature as a provider of inputs. Environment- economy interface ii: commodification of environment degradation (output: nature as a receiver of outputs. Valuation of nature: a price is set for units of a given natural material through market exchange (laws of supply and demand) Local for natural resources: local cattle auctions, farmers markets. Transactions on the spot - typically: global: those that have a price setting mechanism at the world stage. Key global commodity exchanges: agricultural products: Dalian commodity exchange (china) - soy bean, palm oils. Upcoming market: metals: london metal exchange o. Trading at exchanges can be for: o o. Two parties will agree to a certain price ahead of time. Will purchase on future delivery with a price determined today. Commodity exchanges (i. e. markets) seen as highly efficient price setting mechanisms (i. e.
