World Market Prices for Commodities Too Sticky and Countries Selling Below Production Costs

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Felius
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Joined: Aug 13 2011
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World Market Prices for Commodities Too Sticky and Countries Selling Below Production Costs

Post by Felius »

Not a new problem but one that's particularly problematic for the game's global economy: The commodities prices change too little and too slow. Even at poor market availability and an offer to sell at a higher price, and with countries with major unmet demands, the prices tend to not grow fast enough. Furthermore, to make things worse, for some commodities (specially rubber), some countries with production costs far beyond the global market price for the commodity keep production way beyond their internal demand and export the rest. The case of rubber is particularly noteworthy, with the Global Crisis 2020 sandbox scenario having the United States being a major exporter of Rubber despite that the market price for it tends to stabilize a bit beyond 1k and their production costs are far above 3k.
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