1 Cocoa Trade 20 points 1 10 points For these questions you

1 Cocoa Trade (20 points) 1. (10 points) For these questions you can rely on any of the following data sources (or on some other source that you find online from an international organization or research institution): MIT Observatory of Economic Complexity: https://atlas.media.mit.edu/en/ . UN FAOSTAT : http://www.fao.org/faostat/en/ #home UN Comtrade: https://comtrade.un.org/data (a) Identify the 5 largest exporters and the 5 largest importers of cocoa beans (HS commod- ity code 1801) and chocolate (HS commodity code 1806) in a recent year for which data is available. (b) What fraction of the world exports and imports of each of these commodities is concen- trated in these 5 countries? Are the exports or the imports of each of these products more concentrated in fewer traders? How would you explain these differences in concen- tration? e) Broadly speaking describe what types of countries tend to export and import each of these products (e.g., rich or poor, geographically large or small, geographically central or peripheral) and discuss what forces may explain this pattern of trade. (d) Would you describe the trade in cocoa beans and chocolate among these exporters and impoters as being largely intra- or inter-industry?

Solution

1.a ) Cocoa

5 largest exporters are , ghana , equador , belgium , netherlands and malayasia.

5 largest importers are netherlands , u.s , germany , belgium and malayasia

b) export share

ghana - 39%

equador - 13%

belgium - 13%

netherlands-9.2%

malayasia-5.8%

export share is majorly concentraded in latin america countries due to rich supply and production there.

import share

netherlands , -25%

u.s ,-13%

germany -11%,

belgium -9.8%

malayasia-6.4%

import share is majorly concentraded in europe countries due to rich demand of coffee and related products.

c) poor countries(devolping) export such products , geographically large and peripheral.

rich countries(developed) import such products , geographically large and central.

d) the trade is inter industry.(between nations)

For chocolates

a)The top exporters of Chocolate are Germany , Belgium , the Netherlands Italyand the U nited States . The top importers are the United States , Germany , France,, the United Kingdom and the Netherlands .

b) export shares

Germany -18%, Belgium -11%, the Netherlands-7.3% Italy-6.5%and the U nited States-6.3%

import shares

United States -11%, Germany -10%, France-8.8%,, the United Kingdom-8.2% and the Netherlands .-5.2%

c) rich countries(developed) export such products , geographically large and central.

rich countries(developed) import such products , geographically large and central.

d) the trade is inter industry.(between nations)