Not surprisingly, manufacturers want some control over the prices they pay for commodities. Futures contracts are agreements between a buyer and a seller to exchange something at a set price at some time in the future. These contracts let buyers lock in a price for basic materials.
But some traders in futures markets only want to make a profit. They buy or sell contracts depending on the direction they believe prices will go. These speculators get blamed when prices rise, or fall, too quickly.
The United States, Germany and France are looking into ways to limit this kind of trading.
Some experts say exporting commodities is not a good path to long-term economic growth. The United Nations recently reported that the least developed countries must change their economies to provide good incomes for their citizens.
Supachai Panitchpakdi leads the UN development group UNCTAD. He says the least developed countries need to cut dependence on commodities and manufacture products for export. He says only this will let them gain from world trade.
And that’s the VOA Special English Economics Report, written by Mario Ritter. Follow us on Facebook, Twitter, YouTube and iTunes at VOA Learning English. I’m Steve Ember.
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2013-11-25
2013-11-25
2013-11-25
2013-11-25
2013-11-25
2013-11-25