Key price and market analysis terminology
: Prices set by government. Examples are pan territorial and pan
Barriers to entry
Factors that prevent or place new entrants to trade at a cost
disadvantage relative to established firms within an industry.
A method of exchanging goods and services directly for other goods and
services without using a separate unit of account or medium of exchanges. A successful
barter transaction requires a double coincidence of wants.
Stocks of a commodity held in an attempt to even out price fluctuations
in primary commodities. The operators use the stock to mitigate fluctuations in prices by
selling from the stock when prices are high (as a result of shortage in the market) and by
buying the commodity when prices are low (as a result of surplus in the market).
A market characterized by excess supply in which sellers consequently
experience difficulty in selling all their output at anticipated prices to the advantage of
Cost, Insurance, Freight. A term which describes pricing or valuation of a good to
include all of the costs (known as transfer costs) of delivering a good to the point of
consumption. It may be contrasted with the FOB (or free on board) where the transfer
costs are excluded. Imports are often valued at CIF prices and exports at FOB prices.
CPI (consumer price index)
The cost of a given basket of goods used by classes of
consumers, with different commodities given different weights.
Crops grown by peasant farmers mostly for sale in the market as opposed to
crops directly consumed for subsistence purposes. Some food crops can become cash
crops when a surplus is produced (e.g., maize in southern Africa).
A market in which a very large number of buyers and sellers
trade independently, and no one trader can control significant quantities to be able to
substantially influence prices.
Any economic agent involved in the consuming of final goods and services.
Households, not individuals, make many consumption decisions. This is important since
households may take decisions based on some compromise of individual wants within the