ARGUMENTATIVE ESSAY

 

    This rise in global interactions has caused international trade and the exchange of ideas and culture to grow. Globalization is primarily an economic process associated with social and cultural factors of integration and interaction. Conflicts and diplomacy, however, are also nice aspects of the history of globalization and modern globalization. Economically, globalization includes capital goods, services, data, technology and economic resources. The expansion of global markets liberalizes the exchange of goods and funds in economic activities.

https://pragmaticpricing.com/2018/01/23/how-do-you-price-long-term-contracts-when-cost-fluctuations-are-involved/

    The fact that prices are going up and down: The fluctuation of food prices has been caused by financial speculation. Increased demand from customers and suppliers will lead to price increases and even higher levels of output when there is economic growth. Of course, there would be the reverse impact of poor economies as recessions and they will cause lower prices. The uneven increase in prices ultimately decreases the buying power of certain customers in an inflationary setting, and this loss of real income is the single greatest cost of inflation. For recipients and payers of fixed interest rates, inflation may also distort buying power over time.

https://business.time.com/2013/03/12/if-theres-no-inflation-why-are-prices-up-so-much/

    To minimize speculative activity and thus restrict uncertainty, the regulatory mechanisms regulating commodity exchanges must also be checked. However, over-regulation must be avoided, as it could restrict the ability of the market to detect prices and provide liquidity. Thus the only real solution to excessive uncertainty in the long run is to spend a lot more in agriculture.

REFERENCES: 

Chambers, M., & Bailey, R. (1996). A Theory of Commodity Price Fluctuations. Journal of Political Economy, 104(5), 924-957. Retrieved December 7, 2020, from http://www.jstor.org/stable/2138947