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Feb 9, 11.25. My answers. Sample exam questions & Tasks from lectures and questions from lectures

Time 60 Minutes, Total points 100, ~5 tasks, ~20 points each task maybe?, ~12 min each maybe?

10 points = 6 minutes, so if task is 25 points, you have 15 min. If there's a question with 3 points, don't spend half an hour on that

maybe grading distributes like this?

if you have, I suppose, 95 points, you get a 1.0 - sehr gut

if you have ~94-76 you have 1.1-2.5 - gut

if you have ~75-60 you have 2.6-3.5 - befriedigend

If you have ~59-50 then you have 3.6-4.0 - ausreichend

topics and learning outcomes and skills required overall

Knowledge about Food Markets - Can understand/describe/explain

- Economic Literacy (understanding market structures, key players, trends)

- Analytical Thinking (identifying factors influencing markets)

- Critical Thinking (evaluating intermarket relationships, identifying causal links)

- Economic Literacy (understanding how markets interact)

- Analytical Thinking (applying models to real-world market changes)

- Quantitative Skills (using econometric/statistical tools for market analysis)

- Quantitative & Statistical Skills (apply econometric tools, interpret price trends and elasticities)

- Economic Literacy (knowledge of key stakeholders, supply chain structure)

- Analytical Thinking (mapping actors and their roles in trade)

are able to analyse developments on agricultural and food markets based on economic theories.

Products/ Supply, demand, trade of major food markets (European/global). can describe key European and global agricultural and food markets.

Interdependencies between markets. Interdependencies between agricultural and food markets. can explain the impact of interdependencies between agricultural and food markets.

Pricing systems

Actors / companies. Relevant actors on agricultural and food markets. can explain and structure relevant actors of international agricultural and food markets.

Knowledge about Institutional Framework - Can understand and then describe/explain

- Economic Literacy (understanding WTO rules, agreements, and trade policies)

- Analytical Thinking (assessing the role of WTO mechanisms in trade disputes)

- Analytical & Quantitative Thinking (analyze impact of tariffs, model trade distortions)

- Critical Thinking (distinguishing legitimate NTBs from protectionist measures)

- Economic Literacy (understanding trade restrictions, compliance structures)

- Critical Thinking (assessing economic impacts of NTBs on stakeholders, analyzing trade distortions, policy effectiveness)

- Quantitative & Statistical Skills (applying models to measure welfare impacts)

- Economic Literacy (understanding regulatory differences and trade implications)

- Analytical Thinking (evaluating the role of private vs public standards), Economic Literacy (market regulations, compliance structures)

Legal framework for international markets.

WTO as the framework for global food markets. can describe the basic framework for international trade provided by the WTO.

Tariff barriers

Non-tariff barriers. Relevance and evaluation of Non-Tariff Trade Barriers in agicultural and food markets. Can explain the relevance, the international framework of NTB in agricultural and food markets.

are able to evaluate the welfare effects of NTB under different assumptions.

Private Standards. Private versus public standards in agricultural and food markets. comprehend the difference between private and public standards in world agricultural and food markets.

Knowledge on Relevant Organisation - Can explain

- Analytical Thinking (assessing value chain dependencies and efficiency), Statistical Skills (HHI, firm-level concentration measures, spatial economics)

- Economic Literacy (understanding logistics and coordination mechanisms), Analytical Thinking (mapping dependencies, trade relationships)

Spatial and enterprise concentration in the agricultural up- and downstream sector. can explain the need for coordination within food value chains depending on product and value chain characteristics.

Global Value Chains

Concentration (business level)

Spatial concentration

Understand Analytical Framework - Can evaluate

- Quantitative & Statistical Skills (interpreting economic models and their assumptions), Critical Thinking & Quantitative Analysis (policy evaluation, impact assessment)

- Critical Thinking (assessing robustness of model outcomes). Quantitative & Statistical Skills (econometric analysis, graphical/mathematical models)

Basics of modelling agricultural markets. Modelling food markets. can evaluate results of agricultural models

Approaches / limits / applications

Welfare Analysis

Measuring Competitiveness

Apply and Communicate - Can evaluate, explain, discuss

- Communication Skills (oral and written, presenting economic findings clearly),

- Critical Thinking (synthesizing multiple economic concepts into a structured argument)

Are able to combine insights generated in class to a specific case and present/ discuss in class.

Task 1

a) Production quantities soy bean, sugar, palmoil- 5

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(maybe) soybean is more than 1 billion tonnes annually globally (?)

palmoil (idk but maybe if i need to guess) 200-300 million tonnes maybe annually globally (?)

sugar (also maybe quite high) 750 mln to 1 bln tonnes annually globally (?)

b) Statistical problems in databases connected with the EU - 5

One of the problems is that EU state members increase and change over the years

Also compared to US statistics in EU different units of measures (i think), in US for grains they use bushnels (i think), and not like tonnes or something like in EU

c) what do the following appreciations abbreviations mean: - 5

LDC

local domestic consumption (i would say, but I don’t remember)

SME

small medidum enterprises (but I don’t remmeber either)

CWE

corn wheat, and something else (? i don’t remember either)

d) Definition of term coarse grains - 5

it most propular grains - barley corn and whea (i am not sure here i think this is not correc)

Task 2

Explain effects of higher tariffs for processed products compared to raw products for the processing companies.

a) Explanation

Higher tariffs for importing processed products for processing companies means higher costs and that means less margin if they need to compete with domesticlly processed goods (i am not sure, but i think is close to the actual idea)

b) Calculation based on example

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global markets.pdf 2025-02-09 11-48-29.png

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(i don’t udnerstand this, I don’t understand conversion what does it mean? why we need conversion here? do we know costs? how we can calculate magins, if we don’t know costs)

Task 3

What is the aim of Porter’s diamond? Discuss the demand conditions within a nation as outlined in the diamond that help companies to compete. Name the other determinants of competitive advantage (only name, no explanation)

The Aim of Porter’s diamond is to explain how firms can achieve competitive advantage based on which factors

Demand conditions that help companies compete are how preassuring demand of local consumers in the market, whether they have high standards and therefore companies are preassured to innovate and at the end this will help them become more competitive outside of the country

Other determinants of competitive adantage are:

factor conditions

existance of other suppliers, infrastrcture in regional proximity for example

(i don’t remember others, i think it’s at least 1 more or maybe 2)

Task 4

a) Impact of Tariff Rate Quotas. We had to label a figure and explain the concept and how it works

tariff rate quotas are quotas on applying tariff rates to import, like for example one country set certain quota to import of certain commodity and other countries exporters kinda buy it, or book it, and by certian amount of imports they won’t pay higher tariffs, but if they exceed their imports they will have to pay tariffs for importing (i am not sure, that actually right, but it’s close)

Solution:

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b) What are the advantages and disadvantages of historical precedent (related to TRQ as well)?

(i dont’ know :()

Task 5

Modelling: Discuss the impact of time dimensions on models. Differentiate between static and dynamic models. Graph an example.

(I honestly don’t know what this question means)

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Task 1.

tariff rate quotas. we had to label a figure and explain the concept and how it works)

Task 2.

competitiveness indices (we were given several graphs of a competitiveness index and had to explain how we would interpret that)

Trade-based indicators: characteristics

Designed for international comparison (competitiveness between nations), but if data is available can be used to contrast the competitiveness of different regions.

Can be calculated for single products or an aggregate of products.

Based on trade rather than on domestic market information.

• Advantages:

Demand and supply responses are considered simultaneously

Costs of marketing and transport to and from the port of entry are taken into account

Data easily available

Balassa’s Revealed Comparative Advantage Export Indicator (XCA)

Advantages

Relative indicator

Data requirements are low (only export values)

Easy to calculate

Calculation possible for the whole agribusiness, specific branches or single products

Can be used to compare the same sector across countries or sectors within the same country as well as over time

Disadvantages

Value range: • No upper boundary • Lack of symmetry

Only exports are considered

Intra-industrial trade?

Transit trade?

Results can be severely distorted

• by incentives (e.g., subsidies) or disincentives (e.g. taxes) to export

Vollrath ’s Relative Revealed Comparative Export Indicator (RXCA)

𝑅𝑋𝐶𝐴 = 𝑋൘෍𝑋 / ෍𝑋 ൘෍෍𝑋 𝑖𝑗 𝑖𝑗 𝑖𝑟 𝑛𝑗 𝑛𝑟

𝑟𝑛𝑛𝑟

X: Subscript i/j: Subscript n/r: all products less i/all countries less j

Advantages

exports product/country

a) =0?

b) =0?

Disadvantages

can be undefined if: a) the considered product is exclusively exported by the country under consideration, or b) if this country exports only this one good)

no upper limit, no symmetry

considers only exports

no double counting of countries and products ➢ Relative indicator

Data requirements are low (only export values)

Easy to calculate

Calculation possible for the whole agribusiness, specific branches or single products

Can be used to compare the same sector across countries or sectors within the same country

Task 3.

explain the difference and the pros and cons of partial and general equilibrium models

Task 4.

explain the different governance types (that was from Prof Lemken‘s part)

Task 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)

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Tasks Lemken part

Open-ended questions, meaning that you need to be able to write down some ideas on what is asked there

Reading tasks that we have and the slides during lectures, not the additional ones

IIs that It can also be that there are graphics in the exam

Typically, we have the option with concept notes that you can write something on the side so that you don't have to write everything in the exam

We maybe need to explain different forms of integration and understand which company in this value chain is what kind of integration

It will not be about something like exact dates or not even about

So it would always be on sector level or on theory level

We talked a lot about the basic theories we have here, for example, are workable and you can look into them. Here we have basically the transaction cost theory, right? And we have the levels of integration, which is the coordination theory, and for the other one for horizontal integration we talk at length and we have it here again about competition intensity that always came up during this debate workable competition and competition intensity as a theoretical background

But just what I wanted to say is that I will not ask, for example, the sales volume of a certain company at some point in time that I put on the slides. I want to teach you the general dynamics of these markets.

You need to have a basic understanding of the economic sectors, like the overall income sector, farm sector, trading sector.

I'd be happy if you take correct statements away from the course. If you make it more general, say that Monsanto is a monopolist of the seed market, then of course this is a wrong statement, right? If you now imagine we would have multiple choice, then of course this ain't true. would be a right one. And of course, on how much actually the soybean market means that we have dependencies, that's fully qualitative questions. You can come to the conclusion that because I'm a farmer in Brazil in the soybean region, we are fully dependent on them, and this is not good. They overcharge me because of that, right? It may be that from a global perspective, they say, okay, Monsanto is relatively small. This is not our top priority. We have higher priorities to worry about. But that's a political debate that comes afterwards. That's not something I would ask of you. We do not give you the room to have extensive time for judgments in that sense, right?

So yeah, there won't be very deep questions because it's a time constraint, so there will be open-ended questions, but maybe that requires some kind of concept, knowing of the concept theory, behind, but not writing a huge amount of text.

When I asked on the dynamics of the seed market, then you should be able to state something like this here.

And when we asked on the idea of workable competition, you should be able to understand the basic graph that was here in the slides.

When we talk about transaction cost theory, you should be able to talk about the general ideas about why transaction cost influences the way we organize our value chains.

These are all things that matter here, but the other thing, which is I think the more interesting part, which comes of course later, if you have the basic knowledge, then it would be brilliant to have basically an essay or something about it. This you don't do an exam, right? You basically formulate a position or something on what to take, what to do about the situation, We'd rather find explanations for why the problem exists in a certain way than actually doing any step to solving it. So this cannot be part here. So your opinion is unfortunately not much asked within an exam. Which might not be a good thing because opinions are hard to judge.

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Lecture questions

What does competitiveness actually mean?

Questions that trade theory addressed:

Why does international trade exist?

Is it beneficial for a state to open up to international trade?

What happens, if these country specialize and open up to trade?

What are the effects of e.g. free trade agreements?

But what about comparative advantages?

But why is there still protectionism?

Is ES suitable as an indicator of competitiveness?

Is this really a comparative advantage in the production of coffee? (XCA)

Porter Diamond model Model derived from cases focusing on the developed nations – is it still relevant for the developing countries?

How do you ensure that your country’s consumers are being supplied with food that is safe to eat — “safe” by the standards you consider appropriate? And at the same time, how can you ensure that strict health and safety regulations are not being used as an excuse for protecting domestic producers?

SPS Agreement. The protection objectives limits the level of trade liberalisation

• SPS allows protection of nation with respect to undesired consequences of trade liberalization What do you think about this?

EU legislation protects consumers by: Setting maximum residual levels (MRL) for aflatoxins in food and feed to ensure they are not harmful to human or animal health. Can be considered as an SPS measure, which is therefore covered by the SPS agreement/ But does it conform to the provisions of the SPS Agreement?

Trade leads to an increase in welfare in both countries But does this still hold if we consider that lower standards lead to a divergence between marginal private and marginal social utility (= negative externalities, e.g. aflatoxin in nuts)???

Does country B have to live with this? The welfare effect of trade in country B is no longer unambiguous. Basic Rights (SPS Agreement - Article 2.1) Members have the right to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life or health, provided that such measures are not inconsistent with the provisions of this Agreement. Thus, the country may allow only imports at standards in line with domestic production. What would be the effects?

The welfare effect of trade in country B is now again unambiguous positive. The welfare effect of trade in country A is likely positive as well but may well be lower compared to case 2: Empircal question Costs of implementing higher food safety standards in country A may be very high Welfare effects of trade can be negative Prohibitive high: no trade Do you think there are difference between countries regarding those costs? Any idea, how to mitigate that dilemma?

Is free trade on food markets desirable?

Questions arising in the context of the WTO principles: • To what extend are special environmental problems taken into account? • Nutrition cycle • Biodiversity • What about income distribution (see: the Kaldor–Hicks criterion, Pareto optimum) • Food security

What are trade distorting measures?

EU Ban on Hormone-Treated Beef Concerns • Other countries might adopt similar measures based on health concerns that lack a legitimate scientific basis • Non compliance undermines ability of the WTO to resolve disputes regarding SPS • Showed WTO case does not result in the removal of trade restrictive practices What do you think?

Dispute Settlement Need for Reform • Improving the quality of first instance panel decision-making to reduce the need for appeals • Limiting access to appeals and providing additional guidance to the Appelate Body • Increasing representation of women • Improving transparency and streamlining procedures. Modernizing the WTO’s Dispute Settlement Understanding - Bing video Global Agricultural and Food Markets – WTO – Dispute Settlement - 26 - What do you think? What global trade deals are really about (hint: it's not trade) | Haley Edwards | TEDxMidAtlantic - Bing video

We talk about world markets and world market prices. The question that (never) comes up: Where is the world market?

Supply Balances cover different positions • Change in stocks? • Losses?

How does PSD Online report European Union data?

Why don’t total imports equal total exports for oilseeds and products?

Biofuels and the Agricultural Markets Up to you State measure: Mandatory blend of gasoline and ethanol • Impact on agricultural markets? • Additional effects?

What are the impacts of state measures promoting biofuels? Impact of different instruments • Tax reduction on biofuels (to compensate competitive advantage) • Mandatory blending • Fixed price for renewable energy above the market price of energy (e.g. electric energy from renewable resources in Germany) - 49 - Up to you Mandatory blending: share of biofuels 5%: Rough estimation of price elasticity of demand for biofuels and reasons why

Reaction on markets: How to promote GM free production and consumption?

- regionals hubs - what would you define a region?

How also acquire knowledge? Easier is to say supplier what you need from products? New materials

Transaction cost theory. Are actors working for their own interests more motivated? All acrors integrated in companies work more according to predefined rules? Firms need to optimze coordination costs and “motivation costs”

How do we characterize the coordination of UK-Kenya fresh food value-chains?

hybrid increases flexibility and manages risk?

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Concetration in the Food Value Chain Good or Evil?

What is desirable concentration? And what isn't desirable?

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Reaction on markets: How to promote sustainable production and consumption?

How to calculate interdependent prices?

• Calculation of rapeseed price based on the prices of plant oil and oilseed meal?

Sector level of theory level exam questions!

Prepare for open-ended questions related to market structures, competition intensity, and antitrust laws.

There was no company that claimed our sugar as the best. Okay, question for you guys. Maybe that's a good question to ask here. You see here on the right, the pork industry and how much we produce pigs in Germany, where we produce them, where we produce more than 300 hectares. No, 300,000 hectares. And this one here is for cattle. So what you notice on that German map is that there are certain regions where we produce much more of a certain type, right? Any idea on why we have this regional concentration? Why do we have regional concentration?

What are the drivers of regional concetration of pig production?

What are the barriers of regional concetration of pig production?

So plant oil, you can make diesel out of that, you have to process it. But the first step that you can do is to look at the diesel and the plant oil and what you see that the prices are also highly correlated. But the question is, is it worth using plant oil as a substitute for diesel? If you see that here, what would you say? The first thing is, if diesel, is it worth or is it not? to use plant oil for producing energy?

We have that in the organic sector. So you may not feel a difference between the products, organic or conventional, but obviously some people want to do that organic and by that are willing to pay their price. The question is then, what can you do in order to promote that sustainable production? And there are different ways To do that, they are called, I will explain them in more detail, Identity Preserved Segregation Mass Balance of Book and Click.

What can be considered as mass production? Farming machinnery in agriculture

Why butter price jumped so high?

Why these 3 so tightly correlated to each other prices - whteat, barley, corn?

Why production icreased? cerales, rices increase of production?

Why we structure value chains? What for?

Why transaction cost influence the way we organize value chains

Anyy udea why the rapeseed meat is ccheaper than the rapeseed?

if we need to bake from 1 tonn of unprocessed wheat small 50 grams breads, howw much of those small breads we will get from that amount of unprocessed wheat?

TRQ How to allocate TRQ A relevant exercurs

Amount of bushnel is different always check, future markets strange with cets they use, be careful. Buschnelk book is up always, no relavance t exam d not learn how much buschnel is?

How to promote GMO free Soy?

How to promote sustainable palm oil?

Tariff escalation: how to protect the processing industry?

The carbon footprint of food products is often expressed in CO2 equivalents, but there is ongoing debate about the best reference unit for comparison, such as kilograms, proteins, or nutrient indices. 'What do you think? What would be the best reference unit? How would you like to compare products to a product's global warming potential?'

How companies compete at the same level rather than just upstream or downstream?

How companies can optimize their competitive strategies?

when we have information assymetry?

when firm collusion occurs?

how are global food alue chains strcutured?

transaction cost theory. Central problem of Coase. how can agents take advantage o division of labour without loosing potential advatanges of cooperation?

transaction cost theory. when and why firms replace the price mechanism (external procurement) of markets?

When trasaction costs of using the proe system becomes higher than those of using a hierarchy (integrated unit)

which governance structure do you assume for fruits and veegtables x (k)?

What is the best decision for the supermarket? Efficiency vs. Economizing?

Are you economizing your household?

Fragmentation ofproduction processes has reduced motivation costs or coordination costs? why?

What are the challenges in audits?

Does Global GAP promote agricultural exports?

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Lecture exercises/tasks

75 slide!

global markets.pdf 2025-02-09 12-48-19.png

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hartman

Group work. -10 First take each a few minutes to get familiar with the graph. Then pose questions, in case you have any, to your neighbor. If you both have no question everybody starts to solve the task for themselves. Otherwise, first the questions are answered by the fellow student, and then everybody works on the graph themselves. Compare your results and find solutions where you discover differences. In case you have problems you cannot solve raise your hand.

Group work - 20 First take each a few minutes to get familiar with the graph. Then pose questions, in case you have any, to your neighbor. If you both have no question everybody starts to solve the task for themselves. Otherwise, first the questions are answered by the fellow student and then everybody works on the graph themselves. Compare your results and find solutions where you discover differences. In case you have problems you cannot solve raise your hand. About 15 Minutes

Group work - 34 First take each a few minutes to get familiar with the graph. Then pose questions, in case you have any, to your neighbor. If you both have no question everybody starts to solve the task for themselves. Otherwise, first the questions are answered by the fellow student and then everybody works on the graph themselves. Compare your results and find solutions where you discover differences. In case you have problems you cannot solve raise your hand.

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reading and other tasks Lemken

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1. Competitiveness

Practical exercise ➢ We want to analyse trade competitiveness of the Netherlands ́ and Romanian dairy sector between 2004 and 2021. ➢ We obtain the data from the FAOSTAT. See query structure ➢ Data is provided on E-campus. Please download the excel sheet. ➢ Three tasks, one for each index. Global Agricultural and Food Markets - Competitiveness Part 3 -5- Important points when working with trade data – Aggregate structure 1. Butter and ghee, sheep milk 2. Butter, cow milk 3. Buttermilk, curdled, acidified milk 4. Cheese, goat milk 5. Cheese, processed 6. Cheese, sheep milk 7. Cheese, skimmed cow milk 8. Cheese, whole cow milk 9. Cream fresh 10. Ghee, buffalo milk 11. Ghee, butteroil of cow milk 12. Milk, dry buttermilk 13. Milk, products of natural constituents 14. Milk, reconstituted 15. Milk, skimmed condensed 16. Milk, skimmed cow 17. Milk, skimmed dried 18. Milk, skimmed evaporated 19. Milk, whole condensed 20. Milk, whole dried 21. Milk, whole evaporated 22. Milk, whole fresh cow 23. Milk, whole fresh sheep 24. Whey, cheese 25. Whey, condensed 26. Whey, dry 27. Whey, fresh 28. Yoghurt 29. Yoghurt, concentrated or not

Practical exercise / Task 1 ➢ Task 1: Calcualte dairy export market share for the Netherlands and Romania. (1) (2) ➢ We need (1) dairy export values for both countries and (2) total valued of world dairy exports, for the period 2004 – 2021. Global Agricultural and Food Markets - Competitiveness Part 3 -7- Practical exercise / Task 1 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% ES - Netherlands 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Table 1.1: Dairy export value in 1000 USD Year Netherlands Romania World Table 1.2: Export market share Year Netherlands Romania 2004 4258988 2005 4498986 2006 4591219 2007 5683054 2008 6778638 2009 5409438 2010 6499643 2011 7777914 2012 6705554 2013 7343983 2014 7489877.46 2015 6379093.68 2016 6690775.81 2017 8790980.37 2018 8779276.74 2019 8406272.74 2020 8343810.45 2021 9162549.39 16187 20156 19540 24793 29995 31242 46005 60227 76113 97856 125221.2 101814.3 103301.7 128995.5 157386.8 156690.7 153761.4 177764.4 38053663 40514027 42916044 56425827 64727301 51950844.5 62614417.8 72236460 71519757 82635426 87216640.1 66404720.7 64685183.3 77449640.5 80147622.7 79873466.9 80659181.2 98137007.8 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 11.2% 0.0% 11.1% 0.0% 10.7% 0.0% 10.1% 0.0% 10.5% 0.0% 10.4% 0.1% 10.4% 0.1% 10.8% 0.1% 9.4% 0.1% 8.9% 0.1% 8.6% 0.1% 9.6% 0.2% 10.3% 0.2% 11.4% 0.2% 11.0% 0.2% 10.5% 0.2% 10.3% 0.2% 9.3% 0.2% 0.3% 0.2% 0.2% 0.1% 0.1% 0.0% ES - Romania 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Global Agricultural and Food Markets - Competitiveness Part 3 -8- Practical exercise / Task 2 ➢ Task 2: Calcualte Balassa’s Revealed Comparative Advantage Export Indicator (XCA) for the Netherlands and Romania. (1) (2) (3) (4) ➢ We need (1) dairy export values for both countries, (2) total merchandise export for both countries, (3) total valued of world dairy exports and (4) total world merhandise trade, for the period 2004 – 2021. Global Agricultural and Food Markets - Competitiveness Part 3 -9- Practical exercise / Task 2 Table 2.2: Comparative advantage export indicator (XCA) with total merchandise export value used as a baseline for correction Year Netherlands Romania 2004 2.85 0.16 2005 2.83 0.19 2006 2.78 0.17 2007 2.55 0.15 2008 2.65 0.15 2009 2.62 0.19 2010 2.76 0.23 2011 2.95 0.24 2012 2.64 0.34 2013 2.49 0.34 2014 2.43 0.39 2015 2.78 0.42 2016 2.91 0.40 2017 3.09 0.42 2018 2.95 0.48 2019 2.81 0.48 2020 2.70 0.48 2021 2.49 0.46 4.00 3.00 2.00 1.00 0.00 XCA - Netherlands 2004 2006 2008 2010 2012 2014 2016 2018 2020 0.60 0.40 0.20 0.00 XCA - Romania 2004 2006 2008 2010 2012 2014 2016 2018 2020 Global Agricultural and Food Markets - Competitiveness Part 3 - 10 - Practical exercise / Task 3 ➢ Task 3: Calcualte the set of Vollrath’s indicators (RXCA, RMP and RTA) for for the Netherlands and Romania. ➢ You need the same data as for Balassa’s index, but this time both export and import values. Global Agricultural and Food Markets - Competitiveness Part 3 - 11 - Practical exercise / Task 3 𝑹𝑿𝑪𝑨𝒊𝒋 = 𝑿𝒊𝒋൘෍ 𝑿𝒊𝒓 / ෍ 𝑿𝒏𝒋൘෍ ෍ 𝑿𝒏𝒓 𝒓𝒏𝒏𝒓 𝐸𝑥𝑝𝑜𝑟𝑡 𝑜𝑓 𝐷𝑎𝑖𝑟𝑦 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑠 𝑝𝑟𝑜𝑑𝑢𝑐𝑡 𝑖 𝑓𝑟𝑜𝑚 𝑁𝑒𝑡h𝑒𝑟𝑙𝑎𝑛𝑑𝑠(𝑐𝑜𝑢𝑛𝑡𝑟𝑦 𝑗) 𝑇𝑜𝑡𝑎𝑙 𝑒𝑥𝑝𝑜𝑟𝑡𝑠 𝑜𝑑 𝐷𝑎𝑖𝑟𝑦 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑠 (𝑝𝑟𝑜𝑑𝑢𝑐𝑡 𝑖)𝑓𝑟𝑜𝑚 𝑎𝑙𝑙 𝑐𝑜𝑢𝑛𝑡𝑟𝑖𝑒𝑠 𝑙𝑒𝑠𝑠 𝑁𝑒𝑡h𝑒𝑟𝑙𝑎𝑛𝑑𝑠 (Σ𝑟) 𝑇𝑜𝑡𝑎𝑙 𝑒𝑥𝑝𝑜𝑟𝑡𝑠 𝑜𝑓 𝑎𝑙𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑠 𝑙𝑒𝑠𝑠 𝐷𝑎𝑖𝑟𝑦(Σ𝑛) 𝑓𝑟𝑜𝑚 𝑁𝑒𝑡h𝑒𝑟𝑙𝑎𝑛𝑑𝑠 (𝑗) 𝑇𝑜𝑡𝑎𝑙 𝑒𝑥𝑝𝑜𝑟𝑡𝑠 𝑜𝑓 𝑎𝑙𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑠 𝑙𝑒𝑠𝑠 𝐷𝑎𝑖𝑟𝑦(Σ𝑛)𝑓𝑟𝑜𝑚 𝑎𝑙𝑙 𝑐𝑜𝑢𝑛𝑡𝑟𝑖𝑒𝑠 𝑙𝑒𝑠𝑠 𝑁𝑒𝑡h𝑒𝑟𝑙𝑎𝑛𝑑𝑠 (Σ𝑟) X: exports Subscript i,j: product/country Subscript n,r: all products less i/all countries less j Global Agricultural and Food Markets - Competitiveness Part 3 - 12 - Practical exercise / Task 3 Table 3.2: RXCA Netherlands Romania 2004 3.11 0.16 2005 3.08 0.19 2006 3.02 0.17 2007 2.74 0.15 2008 2.86 0.15 2009 2.83 0.18 2010 2.99 0.23 2011 3.21 0.24 2012 2.83 0.34 2013 2.65 0.34 2014 2.58 0.39 2015 3.00 0.42 2016 3.15 0.40 2017 3.39 0.42 2018 3.21 0.48 2019 3.05 0.48 2020 2.92 0.47 2021 2.66 0.46 4.00 3.00 2.00 1.00 0.00 RXCA - Netherlands 2004 2006 2008 2010 2012 2014 2016 2018 2020 0.60 0.40 0.20 0.00 RXCA - Romania 2004 2006 2008 2010 2012 2014 2016 2018 2020 Global Agricultural and Food Markets - Competitiveness Part 3 - 13 - Practical exercise / Task 3 Table 3.3: RMP Netherlands Romania 2004 1.77 0.24 2005 1.77 0.27 2006 1.79 0.32 2007 1.66 0.65 2008 1.37 0.76 2009 1.38 1.13 2010 1.40 1.02 2011 1.42 1.00 2012 1.36 1.05 2013 1.30 1.10 2014 1.24 0.94 2015 1.34 1.07 2016 1.41 1.28 2017 1.64 1.34 2018 1.67 1.34 2019 1.55 1.44 2020 1.49 1.57 2021 1.51 1.71 2.00 1.50 1.00 0.50 0.00 RMP - Netherlands 2.00 1.50 1.00 0.50 0.00 2004 2006 2008 2010 2012 2014 2016 2018 2020 RMP - Romania 2004 2006 2008 2010 2012 2014 2016 2018 2020 Global Agricultural and Food Markets - Competitiveness Part 3 - 14 - Practical exercise / Task 3 Table 3.4: RTA Netherlands Romania 2004 1.34 2005 1.31 2006 1.23 2007 1.08 2008 1.49 2009 1.45 2010 1.58 2011 1.80 2012 1.46 2013 1.35 2014 1.34 2015 1.66 2016 1.74 2017 1.75 2018 1.55 2019 1.50 2020 1.43 2021 1.15 -0.07 -0.08 -0.16 -0.50 -0.61 -0.94 -0.79 -0.76 -0.71 -0.76 -0.55 -0.65 -0.88 -0.93 -0.87 -0.96 -1.10 -1.25 2.00 1.50 1.00 0.50 0.00 RTA - Netherlands 0.00 -0.50 -1.00 -1.50 2004 2006 2008 2010 2012 2014 2016 2018 2020 RTA - Romania 2004 2006 2008 2010 2012 2014 2016 2018 2020 Global Agricultural and Food Markets - Competitiveness Part 3