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Data response (2)

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Read the article Africa: Higher and Volatile Food Prices and Poor Rural People and then answer the questions below.


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Prior to answering this question you might want to check Section 4.1 on Organizations to find a little more about International Fund for Agricultural Development (IFAD).


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Question 1

Distinguish between the terms: foreign aid and multilateral development assistance.

Question 2

Using supply and demand diagrams, explain why the prices of primary commodities are both increasing and volatile.

Question 3

Explain how commodity price changes affect consumers and producers in the developing world.

Question 4

To what extent will the assistance being offered by the International Fund for Agricultural Development help solve the problems associated with price volatility?