GLOBALIZATION AND COMMODITY PRICING: A CRITICAL VIEW

摘要

Advent of globalization has brought benefits of varying proportions to consumers and countries irrespective of geographical locations. Consumers have benefitted from relatively cheap products that would have been otherwise remaining out of reach. Countries have penetrated markets that would have otherwise being closed to trades. Prosperity from globalization has permeated the lives of individuals and communities across the globe from China to Chile, Australia to Argentina: consumers basked in prosperity largely due to globalization. Globalize trade is beneficial in varieties of ways. For instance, it provides alternatives, and creates larger markets which promote specialization and lower cost. Over the years international trade has integrated developing and or emerging economies into the global economy, though extent and pace of integration differed among the economies and regions. This paper examines the influence of globalization on trade integration and commodity pricing. Is there a correlation between the commodity pricing and globalization? What are the interacting variables influencing the relationship? These and other critical questions will be examined; challenges and opportunities will be discussed.