Marketing of Services Telecom
“ASIA – The Emerging Benchmark in Commodities” By: Shiva Aithagoni, 09953701113
ABSTRACT The future could be the past. The Silk Route, an ancient trade route for goods of all kinds between merchants, nomads and urban dwellers from Ancient China, Ancient India, Ancient Tibet, Persian Empire and Mediterranean countries which continued for almost 3000 years is back in a rejuvenated form. Unlike the old times it is not about handful of commodities such as silk or spices but by wide variety of highly fertile grounds suitable for growing cash crops and specialty crops and countries that hold some of the world‟s largest shares of several minerals. The rise of Asia has significantly changed the global commodities market. As the largest consumer of metals, Asia now dictates global prices, and its influence is not merely limited to metals. The commodities derivative market is also evolving at an unstoppable pace. As the US and Europe introduce regulatory changes limiting speculation, a new order is emerging in Asia where more commodities derivatives are available on regional exchanges. It is not to say that it‟s all hunky dory. Most of the Asian countries have some chequered history in commodity markets. Whether it is China‟s closing down of dozen‟s of exchanges in late 90‟s or India‟s trial and error method with some of the key commodities. For Asia to become emerging benchmark in commodity markets, it has to overcome problems with availability of trade & commodity finance, slow pace of reforms and confining exchanges to only domestic players. Each country has its own method and pace for solving this problem but countries should work co operatively at a regional level to solve some of them. For example working establishment of a regional trade finance database to facilitate information exchange and share experiences Asia has many strengths including being the production house of many commodities and growth of consumption of two Asian giants but Population of more two
ABSTRACT The future could be the past. The Silk Route, an ancient trade route for goods of all kinds between merchants, nomads and urban dwellers from Ancient China, Ancient India, Ancient Tibet, Persian Empire and Mediterranean countries which continued for almost 3000 years is back in a rejuvenated form. Unlike the old times it is not about handful of commodities such as silk or spices but by wide variety of highly fertile grounds suitable for growing cash crops and specialty crops and countries that hold some of the world‟s largest shares of several minerals. The rise of Asia has significantly changed the global commodities market. As the largest consumer of metals, Asia now dictates global prices, and its influence is not merely limited to metals. The commodities derivative market is also evolving at an unstoppable pace. As the US and Europe introduce regulatory changes limiting speculation, a new order is emerging in Asia where more commodities derivatives are available on regional exchanges. It is not to say that it‟s all hunky dory. Most of the Asian countries have some chequered history in commodity markets. Whether it is China‟s closing down of dozen‟s of exchanges in late 90‟s or India‟s trial and error method with some of the key commodities. For Asia to become emerging benchmark in commodity markets, it has to overcome problems with availability of trade & commodity finance, slow pace of reforms and confining exchanges to only domestic players. Each country has its own method and pace for solving this problem but countries should work co operatively at a regional level to solve some of them. For example working establishment of a regional trade finance database to facilitate information exchange and share experiences Asia has many strengths including being the production house of many commodities and growth of consumption of two Asian giants but Population of more two
References: UNCTAD Report: Trade and Development Implications of Commodity Exchanges UNCTAD Report: Market access, market entry and competitiveness Commission on Trade in Goods and Services, and Commodities Allegro Report : hedging commodity risk Report Commodity Futures Market in India : By ICICI Trade Finance Division Trade Finance Infrastructure Development Handbook for Economies in Transition Financing the Agri value chain -knowledge is key : Report by Rabo Bank