econ project

Econ2202 – Research Assignment #1 (100 points total)

OPTION 1: Markets, Demand and Supply: The 2007/2008 Food Crisis: In class, you have learned about the theoretical effect of changes in demand and supply on the price of a good, including food commodities. For this assignment, I would like you to apply those concepts learned to a real world situation: the volatility of food prices, the factors involved in the rise in price, and the impact rising food prices can have on the global economy. One consequence of this was seen in the increased poverty and rioting that broke out in many countries around the world in 2008 (e.g. Haiti, India, Egypt, and Mozambique).

Primary Sources/Background information. To begin your research, pick at least one of the three reports listed below and read the report. This should give you good background information on the 2007/2008 Global Food Crisis (NOTE: You must have a valid College of DuPage

library card

to access the electronic indexes and databases from off-campus):

· Trostle, Ronald. ‘Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Commodity Prices’ United States Department of Agriculture (USDA) outlook report WRS-0801. July 2008.

http://www.ers.usda.gov/Publications/WRS0801/

· Schnepf, Randy. ‘High Agricultural Commodity Prices: What are the Issues?’ Congressional Research Service (CRS) Report for Congress. May 6, 2008.

http://www.iatp.org/tradeobservatory/library.cfm?refid=102843

· Clemmitt, Marcia. ‘Global Food Crisis: What’s causing the rising prices?’ CQ researcher, 18, 553-576. June 27, 2008. Accessed September 13, 2010. URL:

http://library.cqpress.com/cqresearcher/cqresrre2008062700

.

What to include in your write-up of this assignment:

1. (5pts) Please discuss any knowledge you had (or did not have) about the Global Food Crisis prior to receiving this assignment, and why you selected this option (approximately 100 words).

2. (45pts) Please summarize the report you selected in 3-4 paragraphs (approximately 300 words). Focus on the main causes of the food crisis, the impact rising prices have had on the global population, and expected trends for the future. You must write this summary in your own words. Do not copy and paste from the report.

3.
(45pts) Secondary sources/Further research options: Then, you will find at least two additional articles related to the Global Food Crisis that will provide you with further knowledge about the food crisis. I would like you to find your articles using the COD library databases (ex: Academic OneFile, the Wall Street Journal, etc. Write 3-4 paragraphs (approximately 300 words), summarizing the main points of the articles you have found. Evaluate the articles you found for objectivity and bias. NOTE: You must have a valid College of DuPage

library card

to access the electronic indexes and databases from off-campus).

Here are some ideas for your further research (you are not limited to these, however):

· The extent of the role U.S. policy has played in the food crisis, particularly 1) the increased demand for bio-fuels as an alternative energy source, and 2) U.S. trade policy in the form of agricultural subsidies. Find two articles that take opposing sides to one of the above policy issues. Write 3-4 paragraphs (300 words), summarizing both sides and which side of the argument you support. Evaluate the articles you found for objectivity and bias.

· Find two articles that discuss the impact of the rising food prices on two separate countries (i.e. one article for each country). Write 3-4 paragraphs (300 words) comparing the impact the crisis has had on the citizens and the economy of the two countries on which you have focused.

· Select a specific food commodity (ex: corn, wheat, rice). Find two articles: one from 2008 and one current article (it must be from the last 30 days). Write 3-4 paragraphs (300 words) discussing what has happened to prices of this specific crop from 2008 to present, the factors that have played the biggest role in the price volatility of this crop, and expectations/predictions about the future price of this crop.

4. (5pts) MLA Citations: Make sure to include proper citations (MLA format) of the two articles you selected. See the library website

http://www.cod.edu/library/research/citenet.htm

for examples.

OPTION 2: Free Trade vs. Fair Trade: In this course, you have learned about international trade, various trade policies, and arguments for and against protectionism. For this assignment, I you will apply those concepts learned to evaluate the costs and benefits of trade policies and the ‘Fair Trade’ initiative.

Primary Sources/Background information. Read the report dated May 18, 2007 titled ‘Fair Trade Labeling: Is it helping small farmers in developing countries?’ by Sarah Glazer. This should give you some great background information on the costs and benefits of Fair Trade labeling and trade policies. You can find this report in the ‘CQ Researcher Online,’ found at the COD library article database. You can find this via the COD library’s ‘Economics Research Guide’. Go to the COD library website (

http://www.cod.edu/library/

) click on ‘Research’ then ‘Economics’ then scroll down to the ‘Article Indexes’ section and you should see the link for ‘CQ Researcher.’ NOTE: You must have a valid College of DuPage

library card

to access the electronic indexes and databases from off-campus.

What to include in your write-up of this assignment:

1. (5pts) Please discuss any knowledge you had (or did not have) about fair trade or ‘Fair Trade Certification’ prior to discussing it in this class, and also discuss why you selected this option (approximately 100 words).

2. (45pts) Summarize the Primary Source: Please summarize this primary source report by Sarah Glazer in 3-4 paragraphs (approximately 300 words). Focus on the growth and evolution of the Fair Trade movement, the perceived benefits/costs of Fair Trade, and other trade policy issues that may impact farmers in developing countries. You must write this summary in your own words. Do not copy and paste from the report.

3. (45pts) Secondary Sources: Further research. In Ms. Glazer’s report, the last section frames a ‘Pro/Con’ debate over whether ‘Fair Trade’ is the best way to help poor farmers. To expand your knowledge, find at least two articles related to this debate using the COD library databases (ex: Academic OneFile, the Wall Street Journal, etc.). These articles should provide you with further perspectives about the benefits/costs of fair trade. Write 3-4 additional paragraphs (approximately 300 words) summarizing both articles and also which side of the argument you support. Be sure to evaluate the articles you found for objectivity and bias.

4. (5pts) MLA Citations: Make sure to include proper citations (MLA format) of the two articles you selected. See the library website
http://www.cod.edu/library/research/citenet.htm
for examples.