Transcript Trade Policies #12. Trade Policies in Developing Countries

Trade Policies
in Developing Country
Course 12
Pos M.Hutabarat, PhD
Jakarta, April 20, 2010
Graduate School, Economic Department
University of Indonesia
Pos M. Hutabarat, PhD
Commodities Agreement
1. Purpose:
(a) maintain price stability in international market
(b) increase foreign exchange earning from exports
(c) increase income of farmers, by reasonable prices
2. Instrument
(a) Buffer stock
(b) Market Operation (buying when price low and
selling when price high)
Pos M. Hutabarat, PhD
Reference Price
P
S
D
Ceiling price
P1
Floor price
Q1
Pos M. Hutabarat, PhD
Q
Reference price
S
P
S’
D
Ceiling price
P1
Floor price
P2
When price
decline, to P2
manager buy
Q3-Q2
Q1 Q3 Q2
Pos M. Hutabarat, PhD
Q
Commodities Agreement
1. Rubber
(a) ANRPC (producers)
(b) IMT-Tripartit (exporters)
(c) INRO (exporters – importers)
2. Pepper (IPC)
3. Coconut (IPCC)
4. Coffee (ICO)
5. CPO (Indonesia-Malaysia)
6. Petroleum (OPEC)
Pos M. Hutabarat, PhD