Chapter 10
Strategic Decision in Long and Short
Run for Cross-Country Commodity
Market in the Post-COVID 19 Era
Arya Kumar
1 Introduction
Trading between the cross countries is the only tool to boost up the economy number.
A minor agreement with a developed country can set up in positioning the world
trading and uplifting the domestic economy. However, the developed country, i.e.,
the United States recently refused India for duty-free trading in the US market till
India unwraps exporting of the agricultural products in US markets. India is still
considered as an agrarian country whose economy is developed only due to the
demand for agro products worldwide, and US agri-business always keeps eye on
developing its agricultural sector which is a non-starter for India.
Unlike India, China’s economists experienced that the FDI mainly for the manu-
facturing sector will not boost up the economy in the long run. FDI is a means for
exchanging technology, and US companies are highly advanced in locating its busi-
ness units in developing countries that will make the US rich but not China. So instead
of reinventing new technology at a cheaper price, it is better to enter a demanding
area globally, i.e., agri-business.
As the world economy has stopped breathing and every sector has crashed down
due to the pandemic issue Covid-19, it is observed that the food supply locally
and globally has to fail down. As there is a strict restriction in the movement of
goods and people within and outside the nation this brings to scarcity of foods and
other amenities. The supreme commodities like fruits and vegetables have reduced
their weightage in production and export due to the restriction of the value chain.
Despite uncertainties due to Covid-19, Food and Agriculture Organization forecasted
a comfortable rise of demand for cereals for the year 2020/21.
A. Kumar (B )
Faculty of MBA, College of IT and Management Education, Biju Patnaik University of
Technology, Bhubaneswar, India
e-mail: arya4134@gmail.com
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2021
P. K. Khosla et al. (eds.), Predictive and Preventive Measures for Covid-19 Pandemic,
Algorithms for Intelligent Systems, https://doi.org/10.1007/978-981-33-4236-1_10
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