GEOG 216 Lecture Notes - World Economy, Papaver Somniferum
23 Nov 2012
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Agriculture: cultivating crops + rearing livestock to produce food + fiber for sustenance/econ gain. Agribusiness: direct corporate involvement in agricul inclu food produc, processing, distrib. When growing tradit crops, prices very unstable (sensitive to certain things in gl/econ) 1980-1993, prices low, then jump up/down, stabilize 2001. Bumper crops, climate plays a part in the story. Socially created issues to increase prices (+ for cocoa) 2002: prices reach 17yr high due to violence in cote d"ivoire. Ceasefire causes sudden drop in prices (see same thing w/oil) War good time to buy cocoa @lower prices, as much as i can. Put it in warehouse s/where + wait until price gets high. Ratio of a nat"s average export price to its average import price (commodity terms of trade) If you are exporting coffee/cocoa/sugar on market w/already too much supply + demand fairly stable = prices are going to go down. Economy faces prob of shortage of foreign currency.
