international commodity agreements


international commodity agreements
Agreements between governments that aim to stabilize the price of commodities. This is often important for producing nations, for whom the revenue from commodity sales may make a major contribution to the national income. Methods tried include government-financed buffer stocks and the imposition of price limits between which the price of the commodity is allowed to fluctuate. Among the commodities for which agreements have been made are coffee, sugar, wheat, cocoa, and tin.

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