...become big business. Some would argue that the commodification of information has led to a lack of security of personal information and others would argue that the commodification of information is necessary for us to continue growing as a society. This essay will discuss the meaning of information commodification and try to make sense from a utilitarian viewpoint as to whether this is a positive move in the right direction or if this move will cause more adverse effects in the long run. A commodity is a marketable item that is produced to satisfy wants or needs and specifically describes a class of goods that is supplied without qualitative differentiation across a market. Commodification is the transformation of goods and services as well as ideas or entities that normally may not be considered goods, into a commodity. Information refers to answers to questions from which knowledge and data can be derived and information requires a cognitive observer (Wikipedia). So information as a commodity is a gathering of usable data or information that has been transformed into a good that is sold in a market, and that is used to help consumers of the information make informed decisions. Those in the business sector do not like commodification due to the fact that it reduces profitability. Businesses pursue “branding” strategies and look for power and influence in...
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...Autarky: the equilibrium or maximizes its welfare when it produces and consumes has only one point in the absence of trade. Commodity or net barter terms of trade: The ratio between the prices of exports and imports is called the net barter terms of trade or as Viner puts it, "the commodity terms of trade." To express this symbolically: Community indifference curve: the various combination of two commodities that yield equal satisfaction to the community or nation Deindustrialization: The process of social and economic change which is due to the reduction in industrial capacity or the activities of a country's manufacturing and heavy industry. Equilibrium-relative commodity price in isolation: it is given by the slope of the tangent common to the nation`s production frontier and indifference curve at the autarky point of production and consumption. Equilibrium-relative commodity price with trade: is the common relative price in both nations at which trade is balanced General equilibrium model: the deals with only two nations, two commodities and two factors Incomplete specialization: Production of goods that compete with imports. Increasing opportunity costs: that the nation must give up more and more of one commodity to release just enough resources to produce each additional unit of another commodity Law of reciprocal demand: it explains how the barter rate, of exchange is determined between the two nations. Marginal rate of substitution (MRS): it is of x for y...
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...this will be an important sector * (F) Technology Sector: Being a technology company, innovation and production techniques are important. Ravi’s personal rank order is : 1. Techniques of production, computers, IT, science, e-commerce (The Technology sector) 2. Customers, clients, potential users of products and services (The Market sector) 3. Competitors, industry size and competitiveness, related industries (The Industry sector). Technology Sector : Trends are - SDN (Software Defined Networking), commoditization of hardware (switches and routers), maturing market of networking, Virtualization and Cloud based services. Techniques of producing software – Agile versus Waterfall. Techniques of producing hardware – Commodity silicon versus custom ASICs. Outsourcing and off-shoring trend : New cutting edge design and development in US (Art). Work that is easily replicable or that can be scripted (Science), is given to cheaper Asian nations. Customers : Enterprise, Service Providers. New trend among Cisco’s clients : they are graduating to be consumers of IT services; there is a need for end to end architecture rather than specific point solutions. Related industries : IBM moved to services when faced with similar commoditization. Competitiors : Huawei commoditizing routers and switches, Riverbed, Juniper, HP. Dell, HP facing similar commoditization challenges. Next slide : The 2*2 matrix of Envt Complexity versus Stability . Position of Cisco is...
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...scarce. He does not deny that in its early stages of development, when IT resources were scare or rare, it was a strategic resource that companies could use to gain a competitive advantage. Carr goes on to explain that IT has become more affordable and thus is available for all companies to use. He claims that this makes IT less of a strategic resource and more a commodity. He compares IT’s transition from resource to commodity to that of the development of railway systems and electrical power. He references the fact that these now common commodities were once strategic resources that were used by companies to gain competitive advantages in the late 1800’s and early 1900’s. Carr goes on to explain that no companies base their business strategy on using electrical power and thus business now should transition away from basing strategy on IT. Carr continues with his argument that IT doesn’t matter by describing how the biggest risk with IT is overspending on unnecessary resources, creating a cost disadvantage. Carr outlines three key philosophies that companies should employ to properly manage IT as a commodity rather than a strategic resource. First, companies should reduce IT spending by differentiating necessary and unnecessary expenditures and acting only on those that are necessary. Second, companies should not operate on the leading edge of technology. Rather, they should hang back and invest in resources that are proven out....
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...The satisfaction someone receives from consuming commodities is called utulity.Total utility refers to the total satisfaction from consuming some commodity. For example, the total utility of consuming 10 units of any commodity is the total satisfaction those 10 units provide. Marginal utility refers to the change in satisfaction resulting from consuming a little more or a little less of the commodity. The marginal utulity of the tenth unit consumed is the additional satisfaction provided by the consumption of that unit, or in other words, the difference in total utility gained by consuming 9 units and by consuming 10 units. The significance of this distinction can be seen by considering two questions: (1) If you had to give up consuming one of the following commodities completely, which would you choose: water or the movies? (2) If you had to pick one of the following, which would you choose: increasing your water consumption by 35 gallons a month (the amount required for an average bath) or attending one more movie a month? In (1) you are comparing the value you place on your total consumption of water with the value you place on all your attendance at the movies. You are compering the total utility of your water consumption with the total utility of your movie attendance. There is little doubt that everyone would answer (1) in the same way revealing that the total utility derived from consuming water exceeds the total utility derived from attending the movies. In (2)...
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...BIS Working Papers No 420 On the correlation between commodity and equity returns: implications for portfolio allocation by Marco Lombardi and Francesco Ravazzolo Monetary and Economic Department July 2013 JEL classification: C11, C15, C53, E17, G17. Keywords: Commodity prices, equity prices, density forecasting, correlation, Bayesian DCC. BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The papers are on subjects of topical interest and are technical in character. The views expressed in them are those of their authors and not necessarily the views of the BIS. This publication is available on the BIS website (www.bis.org). © Bank for International Settlements 2013. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISSN 1020-0959 (print) ISBN 1682-7678 (online) On the correlation between commodity and equity returns: implications for portfolio allocation∗ Marco J. Lombardi† Francesco Ravazzolo‡ July 11, 2013 Abstract In the recent years several commentators hinted at an increase of the correlation between equity and commodity prices, and blamed investment in commodity-related products for this. First, this paper investigates such claims by looking at various measures of correlation. Next, we assess what are the implications of higher correlations...
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...Graduate School of Development Studies A Research Paper presented by: Celeste Aida Molina Fernández (Guatemala) in partial fulfilment of the requirements for obtaining the degree of MASTERS OF ARTS IN DEVELOPMENT STUDIES Specialisation: Rural Livelihoods and Global Change (RLGC) Members of the examining committee: Prof. Dr Max Spoor Prof. Dr Peter Knorringa The Hague, The Netherlands November, 2010 Disclaimer: This document represents part of the author’s study programme while at the Institute of Social Studies. The views stated therein are those of the author and not necessarily those of the Institute. Research papers are not made available for circulation outside of the Institute. Inquiries: Postal address: Institute of Social Studies P.O. Box 29776 2502 LT The Hague The Netherlands Location: Kortenaerkade 12 2518 AX The Hague The Netherlands Telephone: +31 70 426 0460 Fax: +31 70 426 0799 Acknowledgments I would like to express my deepest appreciation to all the people who in one way or another contributed to the completion of this study, especially the interviewees, who generously shared their time and knowledge about the coffee sector in Ethiopia. My sincerest appreciation goes to Bilisuma Dito, who first introduced me to the ECX and provided me with key contacts for the fieldwork. Many thanks to Martha Kibru, Saba Yifredew...
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...differentiate commodity futures from stocks, bonds and other conventional assets. The article also explains in details the mechanics of investment in commodity futures and providing data on its historical returns in comparisons with other assets classes. The articles also elaborated the effects of inflation to commodity futures. Citation Gary Gorton & K. Geert Rouwenhorst (June 2000). Facts and Fantasies About Commodity Futures retrieved from: http://www.nber.org/papers/w10595 Introduction This review critically reviews the article ‘Facts and Fantasies About Commodity Futures which was retrieved from http://www.nber.org/papers/w10595. The review will firstly summarize the article. Secondly, it will briefly analyze the effectiveness of the article’s structure, investigating how the information is set out and whether the reader can access it efficiently. Thirdly, the review will critique the article, evaluating its accuracy, currency, relevance, objectivity and stability. The review will also judge the article’s accessibility and credibility. Overall the article was well written, clear and relevant. Brief Summary This articles was written to study simple properties of commodity futures as an asset class. Apart from explaining the mechanics of investment in commodity futures, the article explained the degree of relationship between spot and futures in term of return and risk. The article also elaborated in detail the different behavior between commodity futures...
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...ทิศทางโลจิสติกส์ประเทศไทยและทิศทางงานวิจย ั รศ.ดร.ดวงพรรณ กริชชาญชัย สํานักประสานงานชุดโครงการวิจยโลจิสติกส์ ั ภายใต้ สํานักงานกองทุนสนับสนุนการวิจย (สกว.) ั egdkc@mahidol.ac.th เครือข่ายนักวิจยไทยด้านการจัดการโซ่คุณค่าและโลจิสติกส์ (ThaiVCML) และสํานักประสานงาน ั ชุ ด โครงการวิจย โลจิส ติก ส์ ซึงได้ร บ การสนั บสนุ นโดย สํา นั ก งานกองทุ น สนับ สนุ น การวิจ ย (สกว.)ได้ ั ั ั ดําเนินงานด้านโลจิสติกส์และโซ่อุปทานมาตังแต่ปี 2545 วัตถุประสงค์หลัก คือ การสร้างให้เกิดงานวิจยและ ั องค์ความรู้ด้านการจัดการโลจิสติกส์และโซ่อุ ปทานขึนในประเทศ โดยใช้กลไกประสานงานวิจยในกลุ่ ม ั เครือข่ายนักวิชาการให้เชือมโยงกับโจทย์จริงจากภาครัฐและภาคอุตสาหกรรม ในการนี ทางสํานักประสานงานชุดโครงการวิจยโลจิสติกส์ ได้รวบรวมข้อมูลทีผ่านมาทังหมดใน ั ประเทศรวมถึงงานวิจยด้านโลจิสติกส์และโซ่อุปทานในกลุ่มเครือข่ายนักวิจยไทยด้านการจัดการโซ่คุณค่า ั ั ั และโลจิสติกส์ (ThaiVCML) และกลุ่มงานวิจยทีสนับสนุ น โดย สํานักงานกองทุนสนับสนุ นการวิจย (สกว.) ั และการระดมสมองในงานสัมมนาเชิงปฏิบตการระดมสมองเพือกําหนดทิศทางโลจิสติกส์ของไทย ในเมือวัน ั ิ อังคารที 9 ธันวาคม 2551 ทีผ่านมานัน สรุปความได้ดงนี คือ ั 1) ประเทศไทยใช้คาว่า “ โลจิสติกส์” เป็ นเครืองมือเชิงกลยุทธ์ เพือนําสู่วตถุประสงค์ ํ ั ความสามารถในการแข่งขันของประเทศ ” ( National Competitiveness ) 2) “ โลจิสติกส์” ต้องมี “บริบท” ให้อยู่ เพราะหลักการจัดการโลจิสติกส์จะขึนตามบริบท และ สิงแวดล้อมทีเปลียนไป 3) บริบทของโลจิสติกส์ในประเทศไทย มี 2 ระดับใหญ่ๆ คือ ระดับจุลภาค และระดับมหภาค โดย กรอบของโลจิสติกส์ในประเทศไทยสามารถสรุปได้ดงภาพ คือ ั 1 หากจะแบ่งระบบโลจิสติกส์ของไทยตามบริบทแบ่งได้...
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...Issues and Concerns of Commodity Derivative Markets in India: An Agenda for Research Nilanjan Ghosh 1. Introduction Commodity derivative markets have traditionally been a contentious issue at various policy forums across the world, particularly with the imbroglio created by allegations from various corners that they encourage excessive speculation and are therefore responsible for the recent commodity price escalation. While this suspicion of excessive speculation in the commodity markets has always been there among policymakers in developing nations like India, it has become more widespread since 2008 in the wake of worldwide inflationary pressures on food and energy. The sudden deflation in the value of various assets underlying different derivatives, which includes commodity derivatives, in the wake of the global meltdown has provoked greater apprehension about the economic utility of futures markets. The suspicion has reached such a high that even the U.S., the biggest proponent of market forces with the most active commodity exchanges in the world, is considering new modes of regulation, and is also investigating the role of commodity derivative trading in the steep rise in prices of wheat, rice, and crude oil. On the other hand, ever since commodity derivative trading was allowed in India in the new millennium, there has always been a hue and cry against such markets, with the alleged notion of excessive “speculation”, though there has rarely been any evidence for it. Rather...
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...MarketLine Case Study Glencore & Xstrata Creating the fourth largest global mining company Reference Code: ML00007-065 Publication Date: January 2013 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED GLENCORE & XSTRATA: CREATING THE FOURTH LARGEST GLOBAL MINING COMPANY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00007-065 /Published 01/2013 Page | 1 OVERVIEW Catalyst Glencore International, a commodity trading giant, is seeking to merge with diversified mining company Xstrata. The move was announced in February 2012 with the proposal accepted by shareholders in November 2012. The deal is worth $31bn and would create the fourth largest mining company in the world behind the top three of BHP Billiton, Vale, and Rio Tinto. The company would also possess leading positions in other commodities in power generation and agricultural products. Summary Glencore is a company which operates in commodity markets, including mining. The company engages in both industrial activity and marketing, which allows it to safeguard against volatilities in an individual market. Further, by engaging in marketing, the company is able to adapt more effectively to adverse conditions. Glencore has demonstrated value creation in its acquisitions, with notable acquisitions including Kazzinc and Viterra. The company’s size also now allows it to negotiate big contracts, as it did with Rusal. Glencore was fast...
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...SUMMER INTERNSHIP REPORT A REPORT ON Steel Price Fluctuations and its Determinants and its Correlation with Different Factors Submitted By- Ajaya Kumar Mall (10BSPHH010049) INDIAINFOLINE LIMITED A Report On Steel Price Fluctuations and its Determinants and its Correlation with Different Factors Submitted by: Ajaya Kumar Mall (10BSPHH010049) A report submitted in partial fulfillment of the requirements of MBA program of IBS Hyderabad INDIAINFOLINE LIMITED Distribution List: Prof. C. Padmavathi Mr. Khamis Raza Taqvi Faculty Guide Company Guide Dept. Of Finance Asst. Vice President IBS Hyderabad IndiaInfoline Limited Date of Submission: 13th May, 2010 AUTHORIZATION This report has been prepared under the guidance of Mr. Khamis Raza Taqvi, Associate vice President of IndiaInfoline Limited, Mr. Sachin Jain, Team Manager, IndiaInfoline Limited and Dr C Padmavathi, Department of Finance, IBS Hyderabad. This report is submitted as partial fulfillment of the requirement of MBA Program of IBS Hyderabad. Date: 13 May, 2011 Ajaya Kumar Mall ...
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...Review of Warehouse Receipt System and Inventory Credit Initiatives in Eastern & Southern Africa Final report commissioned by UNCTAD under the All ACP Agricultural Commodities Programme (AAACP) *The views expressed in this paper are those of the author and do not necessarily reflect the views of the United Nations September 2009 CONTENTS CONTENTS ............................................................................................................................................. i ACKNOWLEDGEMENT .....................................................................................................................iii GLOSSARY OF ABBREVIATIONS .................................................................................................. iv GLOSSARY OF ABBREVIATIONS .................................................................................................. iv SUMMARY ............................................................................................................................................ 1 Introduction ....................................................................................................................... 1 Observations on the different approaches ......................................................................... 1 Policy conclusions and recommendations ........................................................................ 3 Specific proposals .....................................................................
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...History of commodities: There is a belief among the economists that the principles, functions, trading and fundamentals of commodities exchange are centuries old and are been practiced since a long time. These kinds of markets were established in Greece and Rome for the fist time with a fixed time and place for trading, common barter and currency system, and practice of contracting for a future date. There are evidences which shows the fact that the first exchange similar to those of today were established in France and England in the 15th, 16th and 17th centuries. In the 18th century, commodity exchanges followed some of the practices of the medieval fair (where in a marketplace was created to trade commodities) in adopting rules for self-regulation and methods of arbitration and enforcement. During this period the trade was restricted only to the local areas. This trade was declined its importance when there was an enhancement in the telecommunication, transportation and with the advent of modern cities. Specialized market centers were developed in their place in many parts of the world, which facilitated Spot, or cash, trading and forward contracting. The Chicago Board of Trade was the first commodity exchange in the United States of America to be opened in 1848, and is still the largest exchange as well. The futures contract was developed here in the 1860s. The New York Cotton Exchange founded in 1871 was also among few other early United States exchanges. During the Great...
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...Commodity Exchange Market in Bangladesh Prepared by Kamal Uddin Department of Banking &Insurance Faculty of Business Studies, University of Dhaka Outline Rationale Define Commodity & Commodity Exchange Market How Commodity Exchange Market Works? Necessity of Commodity Exchange Market in our Economy Requirement for a Commodity Exchange Market What Bangladesh Doing? Recommendation Rationale: Price Volatility in Our Economy Reason Behind Price Volatility • Intermediaries between producers & end-consumers. • Syndication. • Absence of a proper market system. To remove this barrier a proper market system is required where buyer and seller will have the regular & updated information of market, they will have direct access to market for buying and selling their desired products. This can be done by establishing a Commodity Exchange Market Define Commodity and Commodity Exchange • A Commodity is a product which has a commercial value. It can be produced, bought, sold and consumed. • A commodities exchange is an exchange, just like any Stock Exchange where various commodities and derivatives products are traded. Most Commodity Exchanges across the world trade in agricultural products and other raw materials • To be traded on an Exchange must meet certain specification regarding self life, quality standard, demand and supply and some more. Functionalities Spot or Cash • Direct buy and sales • Usually for immediate consumption • Immediate delivery &...
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