Unit details

ECON3300 Agricultural Economics and Marketing

Credit

6 points

Offering
(see Timetable)

Availability	Location	Mode
Semester 1	UWA (Perth)	Face to face

Details for undergraduate courses

• Level 3 core unit in the Agricultural Science; Agricultural Science and Technology; Agricultural Technology; Agribusiness and Agricultural Science; Agribusiness major sequences
• Level 3 elective

Content

This unit equips students with knowledge and skills necessary to understand economic policies used in international agricultural trade and management of price risk using commodity derivatives. The unit is taught in two modules. The first module introduces students to international agricultural trade by focusing on why trade occurs, trade theories with applications to agriculture, and public policies and government programs affecting agricultural trade. The second introduce students to the purpose, operation, and use of commodity futures contracts and options.

At the end of the unit, the students will have developed an appreciation and understanding of the economics principles that underpinning international trade policies, including (a) determinants of trade patterns between nations; (b) gains from international trade; (c) effects of international trade on an economy; (d) winners and losers from international trade policies; (e) main arguments for and against protectionism; and (f) process and implications of international economic integration. They will also understand (g) how to hedge price risk using futures and option contracts.

Outcomes

Students are able to (1) understand the basic trade theories and their prediction of the pattern of trade between nations; (2) evaluate the impact of different domestic and international trade policies to society, including identifying winners and losers in international trade; (3) understand the basic working of commodity futures and options markets for hedgers and how these are used by agricultural producers to manage price risk; and (4) develop the ability to manage price risk using different hedging and options strategies.

Assessment

Indicative assessments in this unit are as follows: (1) assignments and (2) examination. Further information is available in the unit outline.

For units commencing in May 2022 or later the availability of the supplementary assessment is subject to confirmation.

Student may be offered supplementary assessment in this unit if they meet the eligibility criteria.

Except where supplementary assessment is not available in a unit, it will be offered to students in all units who:

• Are in good academic standing overall;
• Have passed over half the units taken in the teaching period concerned, except where they are only enrolled in two or less units in the period;
• Have submitted all assessment items in the unit;
• Have achieved a mark between 45 and 49 for the unit overall, or the same mark in any failed component item in the unit; and
• No finding of academic misconduct has been made against them in the unit concerned.

Additionally student may apply for supplementary assessment in any unit which is the final unit required for graduation in there course and where they have achieved a mark between 45 and 49 for the unit overall, or the same mark in any failed component item in the unit.

Unit Coordinator(s)

Associate Professor Michael Burton and Dr Amin Mugera

Unit rules

Prerequisites:

Successful completion of 48 points in your chosen degree

Co-requisites:

Nil

Incompatibility:

Nil

Contact hours

lectures: 3 hours per week; tutorials: 2 hours per week

Texts

Carter C. A. Futures and Options Markets: an Introduction: Prentice-Hall 2003

Koo, W. W. and Lynn, K. P. International Trade and Agriculture: Theories and Practices: Wiley-Blackwell 2005