Problems of the World Markets for Tropical Beverages

Alfred Maizels, Robert Bacon and George Mavrotas


Published in print July 1997 | ISBN: 9780198233381
Published online October 2011 | e-ISBN: 9780191678981 | DOI:

Series: UNU/WIDER Studies in Development Economics

Problems of the World Markets for Tropical Beverages

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International economic policy is important in the world markets for tropical beverage crops. Since most of the producing countries are underdeveloped, changes experienced in market conditions that influence tropical beverage prices and earnings from export can significantly affect employment, incomes, and living standards in several developing countries. In particularly, Sub-Saharan Africa can be subject to adverse trends in the prices of tropical beverages as these countries heavily rely on exports of tropical beverage crops. Aside from the fact that the tropical beverage market proves to be unstable because of short-term price cycles and unstable export revenues, the world demand for beverage crops is price-inelastic. This chapter is mainly concerned with the short-term difficulties experienced by developing countries as a result of their dependence on foreign exchange from tropical beverage crops.

Keywords: price-inelastic demand; tropical beverage crops; foreign exchange; market conditions; prices; short-term price cycles; export revenues

Chapter.  6973 words.  Illustrated.

Subjects: Economic Development and Growth

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