196
The dependency of a country on food trade is thus rooted in demand and supply
factors. Demand factors include population, income, and food habits. Supply factors
include arable land available, crop choices, yield, and efficiency of food distribution
and preservation. Crop yields are, in turn, dependent on such factors as soil qualities,
crop choices, labor and nutrient input, crop irrigation, irrigation capital availability,
and other factors (see Sect. 2.3).
Trade depends on more than supply and demand in a particular country.
Commodity prices and the ability of a country to purchase commodities are critical.
High prices on world markets can result in food exports for cash, even in the
presence of high domestic need. Conversely, low world prices without tariff barriers
result in higher imports of the more affordable and desirable (within a domestic
market) food stuffs.
Common metrics (see Data Sets below) that form part of such consideration
include:
• arable land per capita;
• food productivity per capita;
• net imports per capita;
• net imports as a percentage of Gross Domestic Product; and
• food imports as a percentage of merchandise imports.
Metrics of impacts and outcomes include the prevalence of undernourishment
and the prevalence of moderate or severe food insecurity, included within Sustainable
Development Goal 2 (see Sect. 3.7.1).
7.4 International Energy Trade
The importance of energy security to nations is reflected in policies to support the
production of energy sources that exist domestically and policies to minimize
reliance on energy sources from other countries that might be disrupted. The 1973
oil crisis mentioned above was the first of a number of “oil shocks” in the 1970s and
1980s that had huge impacts on economies throughout the world (Huang et al. 1996;
Lutz 2008). In response, many nations implemented significant policies to reduce
their vulnerability to OPEC-led disruptions to oil flows.
According to the Energy Information Administration, the USA is 88% energy
self-sufficient, compared with Japan at 8%, China at 80%, or Russia and Canada at
100% (IEA 2018, Fig. 7.4).
However, for purposes of trade, it is the differences between the production and
consumption of specific energy sources that are critical. The USA, for example, has
traditionally consumed more oil and gas than it produced, and was a major importer
of both commodities. However, in recent years, the USA has become an exporter of
natural gas and will, in the 2020s, be a net export of petroleum too.
If a nation can substitute one energy source for another, the implications of a
shortage in the initial fuel are significantly mitigated.
P. Saundry and B. L. Ruddell
The dependency of a country on food trade is thus rooted in demand and supply
factors. Demand factors include population, income, and food habits. Supply factors
include arable land available, crop choices, yield, and efficiency of food distribution
and preservation. Crop yields are, in turn, dependent on such factors as soil qualities,
crop choices, labor and nutrient input, crop irrigation, irrigation capital availability,
and other factors (see Sect. 2.3).
Trade depends on more than supply and demand in a particular country.
Commodity prices and the ability of a country to purchase commodities are critical.
High prices on world markets can result in food exports for cash, even in the
presence of high domestic need. Conversely, low world prices without tariff barriers
result in higher imports of the more affordable and desirable (within a domestic
market) food stuffs.
Common metrics (see Data Sets below) that form part of such consideration
include:
• arable land per capita;
• food productivity per capita;
• net imports per capita;
• net imports as a percentage of Gross Domestic Product; and
• food imports as a percentage of merchandise imports.
Metrics of impacts and outcomes include the prevalence of undernourishment
and the prevalence of moderate or severe food insecurity, included within Sustainable
Development Goal 2 (see Sect. 3.7.1).
7.4 International Energy Trade
The importance of energy security to nations is reflected in policies to support the
production of energy sources that exist domestically and policies to minimize
reliance on energy sources from other countries that might be disrupted. The 1973
oil crisis mentioned above was the first of a number of “oil shocks” in the 1970s and
1980s that had huge impacts on economies throughout the world (Huang et al. 1996;
Lutz 2008). In response, many nations implemented significant policies to reduce
their vulnerability to OPEC-led disruptions to oil flows.
According to the Energy Information Administration, the USA is 88% energy
self-sufficient, compared with Japan at 8%, China at 80%, or Russia and Canada at
100% (IEA 2018, Fig. 7.4).
However, for purposes of trade, it is the differences between the production and
consumption of specific energy sources that are critical. The USA, for example, has
traditionally consumed more oil and gas than it produced, and was a major importer
of both commodities. However, in recent years, the USA has become an exporter of
natural gas and will, in the 2020s, be a net export of petroleum too.
If a nation can substitute one energy source for another, the implications of a
shortage in the initial fuel are significantly mitigated.
P. Saundry and B. L. Ruddell