Explore BrainMass

Downward push on the prices of exported commodities

Developing countries have often attempted to establish cartels so as to counter the actual or perceived inexorable downward push on the prices of their exported commodities. How do you think such cartels are expected to help the developing countries?

© BrainMass Inc. brainmass.com August 16, 2018, 6:28 am ad1c9bdddf

Solution Preview

Companies typically form cartels if they want to avoid the downward pressure on prices and maintain their profits. In a near oligopoly situation companies can try to beat each other up by lowering their prices continuously. This sort of a price war is ...

Solution Summary

The solution describes the downward push on the price of exported commodities. The solution is very well explained and detailed. A good response for anyone looking to get a deeper understanding of the economics concepts. Overall, an excellent response.