INTERNATIONAL TRADE OF COMMODITIES

The course aims to equip students with the tools to describe and analyze the trading of commodities in the global economy and to identify the international economic arrangements underpinning commodity markets.
Given the increasing globalization of markets, the course pays particular attention to: the analysis of the determinants of global raw material consumption and production, the resulting price formation and its volatility, the study of international trade agreements, public policies, market systems, and the impact of economic shocks.
The course also includes the discussion, as written homework, of specific case studies (such as cotton, cereals, rice, and oil) in order to apply the knowledge acquired and to interpret trade flows.

1. Knowledge and understanding
1.1 Understanding of price formation processes in commodity markets;
1.2 Knowledge and understanding of the effects of the processes of globalization of markets and international economic structures;
1.3 Understanding of the effects of public policies on the commodity market
1.4 Identifying the effects of free trade agreements (multilateral, bilateral, raw materials) on international trade

2. Applying and analysing
2.1 Identifying the determinants of supply and demand to interpret trade flows distinguishing between short and long term variables
2.2 Interpreting the dynamics of international commodity trade in light of the policies adopted and the free trade agreements adopted
2.3 Identifying any distortion effects and interpreting possible developments

3. Evaluating
3.1 Interpreting the import-export flows of commodities taking into account macroeconomic, environmental, social and geopolitical variables
3.2 Reflecting on adopted and adoptable policies in relation to the existing disparities in economic development between importing and exporting countries of raw materials
3.3 Reflecting on the impact of free trade agreements and agreements on raw materials on international commodity trade and their potential distortion

Having passed the basic Economics exams (micro and macro). In particular, it is necessary to master demand and supply models and market systems

1. Long-term consumption and production commodity trends
2. Shift in consumption from developed to developing countries and the role of China and India in the international commodity markets
3. Functioning of commodity markets, price instability and volatility
4. European and international public policies affecting commodity markets
5. Multilateral and bilateral trade agreements
5. International Trade
6. Case study

MANDATORY TEACHING MATERIALS
Available on the Moodle page of the course and must to be consulted (https://moodle.unive.it/course/view.php?id=1011 ). It is strongly suggested to contact the teacher in case of doubts and at least one week before the exam date

OPTIONAL SUGGESTED MATERIALS
The Economist (2013) Guide to Commodities: Producers, players and prices; markets, consumers and trends
Baffes, John, and Peter Nagle, eds. 2022. Commodity Markets: Evolution, Challenges, and Policies. Washington, DC: World Bank. License: Creative Commons Attribution CC BY 3.0 IGO

The exam is written (in presence) and is based on the verification of the expected learning outcomes. The exam, lasting about 60 minutes, is generally divided into three questions that combine theoretical aspects. and practical. They are aimed at measuring the ability and ability to apply knowledge and understanding and judgment.
The exam is passed by obtaining at least 18 points.
A list of theoretical questions and the analysis of some cases are available on the moodle platform.
The possibility to consult teaching material during the exam will be dictated by the modality chosen for the exam, as consequence of the health emergency and specify

written

There are three questions, and each carries equal weight.
Each correct answer is worth 10 points.
Penalties are applied for incorrect answers, based on the degree of error; completely incorrect or missing answers receive 0 points.
The exam is considered passed with a minimum score of 18 points.

The course primarily adopts a conventional teaching approach (including in online or blended learning formats), supplemented by e-learning activities.
The conventional approach is mainly intended to equip students with the tools to describe and analyze commodity markets, and to apply the knowledge and skills they acquire.
The e-learning activities are designed primarily—though not exclusively—to assess the level of critical judgment developed by the students.

This subject deals with topics related to the macro-area "International cooperation" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development