Global trade dynamics' impact on food pricing and supply chain resilience: A quantitative model

Amarachi Queen Olufemi-Phillips 1, *, Abbey Ngochindo Igwe 2, Adekunle Stephen Toromade 3, Nsisong Louis Eyo-Udo 4 and Titilope Tosin Adewale 5

1 Independent Researcher, UK.
2 Independent Researcher, Port Harcourt, Nigeria.
3 Department of Agricultural Economics, Ladoke Akintola University of Technology, Nigeria.
4 Ulster University, United Kingdom.
5 Labatt Breweries of Canada.
 
Review Article
World Journal of Advanced Research and Reviews, 2024, 24(02), 492–519
Article DOI: 10.30574/wjarr.2024.24.2.3350
 
Publication history: 
Received on 25 September 2024; revised on 01 November 2024; accepted on 04 November 2024
 
Abstract: 
This study explores the influence of global trade dynamics on food pricing and supply chain resilience, focusing on the development of a quantitative model that examines the relationships between trade policies, economic indicators, and trade volumes. As fluctuations in trade policies—such as tariffs, quotas, and subsidies—directly impact food prices and market stability, this model provides a structured framework for assessing these variables’ interdependencies. By integrating data on trade flows, currency exchange rates, and commodity prices, the model quantifies the effects of protective and liberalized trade measures on both local and international food markets. This approach allows for identifying trends in pricing volatility linked to policy shifts, thereby offering insights into areas vulnerable to trade disruptions and external economic shocks. The resilience of the food supply chain is measured by evaluating metrics such as delivery times, supplier diversity, and inventory levels across regions affected by trade policy changes. The findings emphasize that trade barriers can result in price spikes, delays, and supply shortages, while open trade policies generally support market flexibility and pricing stability. Additionally, the model incorporates economic indicators such as Gross Domestic Product (GDP), inflation, and unemployment rates, which correlate with food demand and purchasing power, thereby further influencing price and supply chain stability. Future research could leverage this model to develop adaptive strategies that strengthen supply chain resilience under various global trade conditions. Suggested adaptations include diversifying suppliers, increasing inventory buffers, and enhancing predictive analytics for better demand forecasting. By integrating these adaptive measures, stakeholders can mitigate adverse effects on food accessibility and affordability in both developed and emerging economies. This research contributes to the literature on food security, highlighting the need for resilient trade policies and supply chain strategies in an increasingly interconnected global economy.
 
Keywords: 
Global Trade Dynamics; Food Pricing; Supply Chain Resilience; Trade Policies; Economic Indicators; Quantitative Model; Trade Volumes; Food Security; Pricing Volatility; Adaptive Strategies
 
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