Trade Policies in Developing Country Course 12 - PowerPoint PPT Presentation

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Trade Policies in Developing Country Course 12

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Trade Policies in Developing Country Course 12 Pos M.Hutabarat, PhD Jakarta, April 20, 2010 Graduate School, Economic Department University of Indonesia – PowerPoint PPT presentation

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Title: Trade Policies in Developing Country Course 12


1
Trade Policies in Developing Country Course 12
  • Pos M.Hutabarat, PhD
  • Jakarta, April 20, 2010
  • Graduate School, Economic Department
  • University of Indonesia

2
Commodities Agreement
  • Purpose
  • (a) maintain price stability in international
    market
  • (b) increase foreign exchange earning from
    exports
  • (c) increase income of farmers, by reasonable
    prices
  • Instrument
  • (a) Buffer stock
  • (b) Market Operation (buying when price low and
    selling when price high)

3
Reference Price
S
D
P
Ceiling price
P1
Floor price
Q
Q1
4
Reference price
S
S
D
P
Ceiling price
P1
Floor price
P2
When price decline, to P2 manager buy Q3-Q2
Q
Q1
Q2
Q3
5
Commodities Agreement
  • Rubber
  • (a) ANRPC (producers)
  • (b) IMT-Tripartit (exporters)
  • (c) INRO (exporters importers)
  • 2. Pepper (IPC)
  • 3. Coconut (IPCC)
  • Coffee (ICO)
  • CPO (Indonesia-Malaysia)
  • 6. Petroleum (OPEC)
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