International Business 8th Edition by Charles Hill

Exercise 15

One estimate suggests that if food prices rise by one-third, they will reduce living standards in rich countries by about 3 percent, but in very poor ones by about 20 percent. According to the International Food Policy Research Insti­tute, unless policies change, cereal prices will rise by 10 to 20 percent by 2015, and the ex­pansion of bio-fuel production could reduce calorie intake by 2 to 8 percent by 2020 in many of the world's poorest nations. Should rich countries do anything about this potential problem If so, what