International price

Basic introduction

Also known as the international market price or world market prices. International prices of goods and services is the performance of the international monetary value. People often say that the international price is the closing price on the international market representative formed an objective in a given period. Representative of the transaction price usually refers to:

(1) distribution center market in some countries, the distribution of goods in the market;

(2) certain goods in major exporting countries (or regional) representative export prices;

(3) certain goods in major importing countries (or regions) representative import prices;

(4) some important commodities the auction price bid opening price.

factors

international prices are basically formed spontaneously, is determined by the international value, or money, the value of the exchange rate of supply and demand. International market competition and supply and demand in international prices continue to fluctuate around international value, international price changes influencing factors are many, are: monopoly, competitive, capitalist reproduction cyclical changes in state monopoly capitalist intervention in the economy or prices or regulation, changes in science and technology, expand the range of use appears and substitutes, natural resources and conditions, consumer habits and psychological conditions of national and international political changes, war and speculation.

international price consists of production costs, distribution costs, taxes and profits. International prices following categories: reference price, the price of foreign trade statistics, the actual transaction price. International Value (or converted form) is the basis for the formation and changes in international prices. International prices and domestic prices very close contact, countries participating in the international exchange of goods is the basis of international prices of domestic price formation, the international price is the price to develop or extend in an international context. And in turn an impact on domestic price formation conditions change. It should include broad international prices of goods and services prices, the price of capital (or credit) of (or interest rate), foreign exchange price (exchange rate) and so on.

commodity in the international market price is representative of a certain period in the international market price, usually in the majority of transaction price on the international market for the international market commodity prices, commodity prices are set by the international market factors affecting supply and demand on the international market supply and demand decisions are: competition, monopoly, economic development cycle, policies and measures taken by governments, commodity price and non-price, war, natural disasters.

formation conditions

(1) commercial commodities are often formed on the ITC market import and export trading price or export price formation in the major exporting countries and the main importing countries import price formation.

(2) the price can be paid with a free foreign exchange.

(3) commercial import and export business contract prices do not contact each other in international trade, such as international distribution center, international exchange, the famous international trade fairs and exhibitions, often a large number of import and export when area, buyers and sellers to price negotiations, generally with reference to prevailing international market prices.

such as cotton trading, generally referring to the New York Cotton Exchange price;

grain trading are generally referring to the Chicago Corn Exchange;

non-ferrous metal prices are generally referring to prices on the London metal Exchange.

For those who first entered the international market a new product, or can not get the international market price of commodities, that the transaction price is generally agreed upon by the seller and the buyer, with reference to international market prices or price of similar items.

Chinese situation

China to adjust export tax impact on international prices

In 2005, the Chinese government with a "responsible attitude big country, "the import and export tax rates have been adjusted. Import tax rates tend to decrease, while the export tax rate tends to increase. In addition to the government's move motive for fulfilling WTO commitments, more importantly, is based on the understanding of China's economic development and structural adjustment needs, the background rate adjustment is to improve the competitiveness of China's exports, the rapid growth of foreign exchange reserves and upgrading of domestic industries. Since China adopted fixed exchange rate regime pegged to the dollar, but the dollar depreciated, the yuan will depreciate, which led directly to improve the export competitiveness of Chinese consumer goods sector, while long-term surplus in the current account of the people under enormous pressure to appreciate.

With the influx of China, China's foreign exchange reserves extraordinary rapid growth of hot money, this time raising the export tax rate, reduce the trade surplus will help reduce the pressure on RMB appreciation. With the increase of China's economic problems base, the economic growth of the upstream resource commodities, there has been a huge gap, while lower domestic resource utilization, the increased demand for imports. Reduce import tariffs would help to ease domestic shortage of resources.

Of particular note is aluminum, copper, high-energy recovery products export duties, it is out of consideration of the capacity of the domestic environment, and some of the tactics of textile export tariffs is more ease international pressure on trade disputes, the pressure on the entire industry and textile products will not be much. Adjust the tax rate can be seen as an integral part of the whole "macro", the impact on related industries more reflected in the "structural optimization and industrial upgrading", the impact on the total amount is not particularly large. Therefore, the impact on prices is not very significant, the ultimate goal of long-term look at the tax rate adjustment is to upgrade industries and increase efficiency, efficient use of resource commodities price increase will bring it down. But the short term, due to lower import tax rates will increase imports, international prices of resource commodities are bullish short-term effect, for much the same effect on agricultural products.

loss of the right to speak the international price of iron ore

China as the world's largest importer of iron ore and demand for the country, because "the right to speak the international price "the lack of negotiations with international iron ore giants are to price increases for four consecutive years and the final result. In 2006 19% of the China rose more than 12 billion yuan to pay the costs. China General Administration of Customs statistics show that in 2006, China's total imports of iron ore to 326 million tons, up 18.6% over 2005. According to Chinese Industry Research Institute predicted that in 2007, China's iron ore demand will reach 650 million tons; while China Iron and Steel Association predicts that in 2007, China's total imports of iron ore is expected to reach 355 million tons. On this basis, 55% of China's iron ore demand in 2007 will depend on imports. Big country with iron ore demand and domestic mineral resources are scarce, demand almost all rely on imports of Japan, by 30 years to control the upstream resources of overseas expansion and strategic reserves, it has control of steel companies in the face of international competition and active right.

Categories species

a state by the international market price can be divided into: the world's "free market" price and the world "closed market" price.

The former monopoly is not subject to interference and other factors, the price of the deal were operated by independent buyers and sellers;

The latter is a special relationship between the buyer and seller in certain price formation;

it includes multinational corporations as tax evasion and other reasons the development of transfer pricing, monopoly monopoly price taken under internal formulate regional economic trading blocs prices and international commodity agreements price agreements.

world free market price

world "free market" means the price is not subject to monopoly conditions in the international or national monopoly power interference by the independent to price transactions between business buyers and sellers. International supply and demand is the objective basis for such price formation.

"free market" is the focus of many buyers and sellers in a fixed location, according to certain rules, transactions made at a specified time. Although this market will be affected by the international monopolies and state intervention, but because commodity prices by buyers and sellers in the open competition here is formed.

So, it is often more objectively reflect the changes in the relationship between commodity supply and demand. United Nations Conference on Trade and Development published statistics, the price of US wheat Grain Exchange, the British CIF corn (Argentina), and rice (Thailand) FOB Bangkok, New York Harbor delivery of coffee prices and other 36 kinds of primary product prices as the world's "free market" price.

closed world market "price

" closed market "price is the price buyers and sellers formed under certain constraints. Commodity supply and demand in the international relations, generally it will not have a material impact.

transfer pricing

transfer price, also known as transfer pricing refers to the multinationals in order to maximize reduce taxes, to evade exchange control purposes the host country, the price specified in the purchase of goods within the company.

monopoly price

monopoly price refers to international monopolies use their economic power and control market forces to determine prices in the world market, international monopoly price, there are two: one is the seller monopoly price; the other is the buyer of the former monopoly price is higher than the international value of goods. price;.. which is less than the price of goods in international markets

in both monopoly prices, limit excessive profits can be achieved monopoly monopoly price depends on the world market for the sale of international monopolies demand for commodities, the lower limit depends on the cost of production plus average profit international monopolies of the country because of the monopoly does not exclude competition, so the monopoly price is also an objective limit prescribed.

in addition, in the world market on, as governments intervene on prices through various channels, so there are a state monopoly prices or price management.

prices in regional economic trading blocs

after the Second World War, the establishment of many regional economic trading blocs. these economic and trade within the group, to form a regional economic trading blocs in the price as the common Agricultural policy of the European economic Community in the common price. the main content of the common agricultural prices are:

free trade (1) Intra-Community agricultural products;

(2) unified prices for many agricultural products to support the income of farmers;

(3) by specifying the minimum import prices to ensure stable prices of agricultural products, and in-house production to provide some margin of preference;

(4) impose import duties to ensure the implementation of the difference of the lowest price;

(5) of agricultural products to support procurement at the lowest price;

(6) the use of surplus agricultural export subsidies and to accelerate domestic consumption

. Agreement price

commodity agreements usually the lowest price and the highest price and other measures to stabilize commodity prices in international commodity agreements related to commodity prices when the minimum price or less, the reduction in exports, or buffer fund the acquisition of goods; when the market price exceeds the maximum price, then sell or export expansion buffer stocks