Hey! Sorry for not getting back to you sooner! I don’t really have a mock exam for global markets but I think I have a list of possible topics (but this list is extremely old and also includes topics that are not in the course anymore).
But these were the topics in last years exam:
1. tariff rate quotas (we had to label a figure and explain the concept and how it works)
2. competitiveness indices (we were given several graphs of a competitiveness index and had to explain how we would interpret that)
3. explain the difference and the pros and cons of partial and general equilibrium models
4. explain the different governance types (that was from Prof Lemken‘s part)
5. show the net welfare effect of SPS (this was from Prof Hartmann‘s part, we were given one of the figures we had in the class and only had to show the net welfare change, NOT all changes)
Content will focus on:
- Supply, demand, trade of major food markets (European/global)
- Interdependencies between agricultural and food markets
- Legal framework for international markets
- Private versus public standards in agricultural and food markets
- Relevance and evaluation of Non-Tariff Trade Barriers in agicultural and food markets
- Relevant actors on agricultural and food markets
- Spatial and enterprise concentration in the agricultural up- and downstream sector
- Basics of modelling agricultural markets
**Knowledge about Food Markets**
- Products / supply and demand / trade
- Interdependencies between markets
- Pricing systems
- Actors / companies
**Relevant Organisation**
- Global Value Chains
- Concentration (business level)
- Spatial concentration
**Knowledge about Institutional Framework**
- WTO as the framework for global food markets
- Tariff barriers
- Non-tariff barriers
- Private Standards
**Analytical Framework**
- Modelling food markets
- Approaches / limits / applications
- Welfare Analysis
- Measuring Competitiveness
Production & Trade Data and Statistics
FTA
FAO
USDA
CXL sugar
LDC
ABCD
SME
CWE
BSCI
TRQ • FTA: Free Trade Agreement • FAO: Food and Agriculture Organization • USDA: United States Department of Agriculture • CXL sugar: Extra-large crystal sugar • LDC: Least Developed Country • ABCD: Agricultural Bank of China Limited • SME: Small and Medium-sized Enterprises • CWE: Central Western Europe • BSCI: Business Social Compliance Initiative Statistical problems in databases connected with the EU Reasons for differences of data in different databases (USDA, FAO) regarding (World) import and export Information necessary to interpret and compare price quotations To interpret and compare price quotations effectively, it's crucial to consider: • Currency Conversion: Ensure prices are in the same currency for accurate comparisons. • Unit of Measurement: Consistency in units (e.g., per ton, per pound) is essential. • Quality and Grade: Prices may vary based on the quality and grade of the commodity.
Harmonized Commodity Description and Coding System (HS) The Harmonized System is an international nomenclature for the classification of products. It simplifies international trade by providing a common language for classifying traded goods. Application of the HS System The HS system is applied for customs declarations, statistical purposes, and trade negotiations. It helps standardize product classification globally, facilitating smooth international trade. Elements of a supply balance A supply balance typically includes: • Production: Quantity of the commodity produced. • Imports and Exports: Amount brought into and sent out of the country. • Domestic Consumption: How much is consumed within the country. • Ending Stocks: The remaining quantity at the end of the period. This ratio indicates the percentage of a commodity's total supply held in storage at the end of a specified period compared to its total use during that period. Relevance of stock to use ratio for price building A low stock to use ratio may indicate scarcity, potentially leading to higher prices. Conversely, a high ratio may suggest surplus, putting downward pressure on prices. Coverage of COUNCIL REGULATION (EC) No 1308/2013 and its relevance for the EU
agricultural politics This regulation establishes a common organization of agricultural markets. It's relevant for EU agricultural policy, providing rules for market measures, common market organizations, and support mechanisms for various agricultural sectors. Approach of long term projections Long-term projections involve forecasting future trends based on current and historical data. These projections consider factors such as population growth, technological advancements, and economic conditions to anticipate developments in agriculture and related industries. Competitiveness
What is the meaning of ‘competitiveness’? Discuss the different dimensions of competitiveness (you can refer to the dimensions discussed in the definitions presented in class though no definition has to be cited). Define e.g. the ‘Relative Comparative Advantage Export Indicator of Balassa (here you might be also asked for other trade indicators’ (formula, value range). For which values provides the indicator a hint that the considered product/sector is competitive and for which values reveals the indicator a lack of competitiveness. Calculate the indicator for
specific data (here data would be provided). Discuss the results also with respect to the suitability of the indicator for this specific example. Has this indicator in this specific example a considerable disadvantage/considerable advantage compared to the ‘Relative Revealed Export Advantage Indicator of Vollrath? (here also other indicators might be used)’. Briefly explain why/why not. What is the aim of Porter’s diamond? Present the conditions within a nation as outlined in the diamond that help companies to compete. What is the criticism with respect to Porter’s diamond?
WTO tariff barriers and support
Explanation of the general principles of the WTO Definition and explanation of coupled and decoupled subsidies The three boxes for subsidies Classification of subsidies according to the SCM agreement The Special Safeguard Clause (Trigger price, calculation of additional duty, requirement
for imposing) Impact of tariff reduction on domestic markets depending on the gap between domestic
price and world market price and the level of tariff reduction Synopsis of commitments in the AoA Possible impacts of production quotas on supply curve (graphs and explanation of the
curves) Price support and deficiency payments (graphs and explanation) Allocation of TRQs: Explanation and comment TRQs: Impact on domestic markets depending on import demand curve WTO SPS Standards
o Twofold objective
o conflicts between the objectives
o the main principle of solving the conflict
Basic rights and obligations of the SPS Agreement Requirements SPS measures have to fulfill to be deemed as appropriate? Discuss the basic rights and obligations of the SPS Agreement. What are the requirements SPS measures have to fulfill to be deemed as appropriate? Discuss standard types (product/process) and WTO conformity. Dispute Settement (role, basic functioning) The harmonization of consumer protection policies at the international level implies that
countries have to give up part of their sovereignty. Discuss this statement and illustrate
with a graphic the optimal level of harmonization. Illustrate based on a two country world model and using the direct welfare concept the
welfare effects of trade (reference situation no trade and self sufficiency in both countries).
Assume higher standards with respect to food safety in country B. Differentiate three
cases.
o Disregard any divergences between the private and social marginal utility
function; assumption consumption of products with lower standards is not
linked to consumption externalities.
o Consumption of products with lower standards is linked to consumption
externalities. Consider the divergence between private and social MU for
products with lower standards.
o Consumption of products produced in country A is linked to negative
externalities. Precondition for trade is assumed to be that country A adjusts its
food safety standards to the higher food safety standards of country B. This,
however, implies an increase in MC in country A.
(in all cases you would be provided with a diagram with supply and demand functions). Modeling
Relevant differences between formal (mathematical) models Principals of a global model system Main problems of modeling Methodology employed in modeling Differences between General Equilibrium Models and Partial Equilibrium Models Corporate Social Responsibility
• Strategy of NGOs in enforce CSR behavior of retailers
Grain Markets
Definition of term coarse grains World production volumes (∅ 2010/11 - 2014/15) Corn wet-milling process and resulting products Corn dry milling process and resulting products Impact of biofuel production (agricultural and food markets, environment, society) Oilseeds
World production volumes (∅ 2010/11 - 2014/15) Top two countries regarding production volume Extraction rates (oil and meal) Difference between palm oil and palm kernel oil Differences in the production system of GMO soybeans and GMO-free soybeans Segregation and book and claim Context of oilseed and meat, egg and milk production Relevance of soybean meal especially for feeding pigs and poultry Definition of “soybean meal equivalent” and reason for using that standard. Effects of higher tariffs for processed products compared to raw products for the
processing companies
o Explanation
o Calculation based on example Reducing the gap between EU protein supply and demand: relevant aspects to be
considered. Pig meat
World Production ( 2010/11 - 2014/15) Factors determining competitiveness between farms and companies between different regions Factors influencing integration between different steps of the value chain What is the AutoFOM grading system Calculation of the price for pigs based on AutoFOM grading system (saleable cuts) Sugar
World production volumes ( 2010/11 - 2014/15) Difference between raw sugar and white sugar Top three countries regarding production volume Value chains in sweetener markets Products result from sugar beet processing Connection between sugar and energy markets Principles of the EU sugar CMO Temporary scheme for the restructuring of the sugar industry in the community Milk Market
World production volumes cow milk (∅ 2010/11 - 2014/15) Top three countries regarding production volume Valuable ingredients in milk Normal fat and protein content in fluid milk Products relevant for international trade Calculation raw material prices based on product prices (e.g. rapeseed, milk) Context milk and beef production Fundamentals of EU milk market policy Possible impacts of production quotas on supply curve (graphs and explanation of the
curves) Difficulties in compiling a milk balance Foreign Direct Investments
Definition of Foreign Direct Investment (FDI)? Activities not covered by the term FDI Description of the most common forms of FDI. Comparison of Export and FDI; advantages and disadvantages? • Effects of FDI for the home country as well as for the host country? • FDI in land: global drivers • FDI in land: Drivers of state-backed and private investments • FDI in land: The problem of land use rights • Possible economic, socio cultural and environmental impacts of FDI in land on rural livelihoods • Risks and opportunities of large-scale commercials land acquisition 
Exam. Simmons + Hartman parts
