Tommy Le

Honors Capstone
5th McMennamy
21 October 2016
Timed Writing #2
As society grows and economies flourish, we have seen an increase in the GDPs of
many underdeveloped and developing countries. Commodity investing not only proves to be a
valuable asset due to its numerous benefits and opportunities, but due to its ability to allow an
economy to strengthen. One of the major reasons many countries in regions such as Latin
America, Eastern Asia, and Africa have been able to form stronger economies is due to their
commodity investing.
Due to their immense concentration in commodity investing, countries in Asia such as
Singapore have seen an increase in their production and economic growth. As one of the fast
growing economies in the eastern hemisphere and the world, Singapore can account for a lot of
its success due to its involvement in commodity investing. In the late 1990s. Singapore
escalated to outshine the world as the lead producer of rubber in the world (Singapore
Commodity Exchange). Singapore is also known as one of the big players in the sugar market,
exporting millions of dollars worth of sugar per month. In terms of economic growth,
commodities account for around half of Singapores wholesale trade (ieSingapore). Through
their intense amounts of efforts and money poured into growing, producing, and trading rubber,
sugar, and other commodities. Singapore was able to increase its GDP by 8.6% (ieSingapore).
Through commodity investments, Singapore has been able to not only increase its only GDP, but

also the GDPs of surrounding countries such as China, Taiwan, and South Korea. Their presence
in the commodity stock market has become so prominent in the global economy that in the next
40 years, we may see the top economies of the world be totally dominated by these Asian
countries (Imai Katsushi). This just goes on to prove that by investing in the future of its country
through commodities, Singapore was able to positively benefit and will continue to grow in the
future.
In the Latin America region of the world, the Dominican Republic and Brazil are just
some of the numerous countries that have seen an enormous increase in economic growth due to
their investing in their cocoa and mineral commodities. Taking a trip down to the Southern
hemisphere, we can see how the investments of commodities have positively benefited many of
these countries through their increases in jobs and GDP. Commodities such as iron ore,
soybeans, and cocoa are exported daily to dozens of other countries which in turn drive the
prices of many of these commodities upward, resulting in an increase in the value of not only the
stocks, but also the GDPs of these countries. Due to its climate, the Dominican Republic has a
comparative advantage over many countries and is able to produce cocoa and coffee beans at a
much lower opportunity cost and because of this, the Dominican Republic is able to control the
market prices and stability and maintain total dominance over the stock market. Because of this,
we have seen a huge increase in the GDP of the Dominican Republic 6.4% (Paul Siegel).
Likewise, Brazil is soon coming out of its under developing status as country through
investments in the industrialization of the country. Brazils gold mines are thrusting them in front
of many of their neighboring countries, allowing for jobs to be created in the mines, factories that
refine the gold, and distributors to help export these goods (Paul Siegel). Through these

investments into the gold market, Brazil has been growing and growing, becoming one of the
major powerhouse economies in the Latin American region. Commodity investments are able to
increase exporting, create jobs, and increase production which in turn will lead to a stronger
GDP and more economic growth for these Latin American countries, proving its necessity in our
modern day economy.
Many underdeveloped countries in the African region such as the Congo and Zimbabwe
are see huge returns on their investments and increases in their GDPs due to their involvement
and investments in commodities. In Africa, many of the countries operate off commodities such
as milk products, pork bellies, cotton, and precious metals (Angus Deaton).Through
commodities, strong economies in Europe such as Germany and England are able to invest in
underdeveloped and developing countries like Nigeria and the Congo which benefits everyone
involved. Many countries in South Africa are locking in contracts with other countries and
companies which in turn not only allows for these companies to potentially save millions in the
future,but also allows for the African countries to get sell and export their products over the
future years, increasing their GDP now and over time. Africas gold and silver mines are causing
huge booms in their economies as the demand for these metals are increasing exponentially. As
technology and society advances, we are finding new and more efficient ways of using and
retrieving energy, most of which are coming from big,intricate machines. And because many of
these machines require silver and iron in their main components, we are seeing a huge increase
in demand for the market of precious metals. Countries are finding themselves pouring billions
into the continent of Africa as the commodities that are being offered in the long run could make

them millions, and these underdeveloped countries are allowed to join the industrialization era of
the world through these investments and improve their own economies as well.
Commodity investing is an important and vital part to our growing and developing
countries as it acts as an opportunity for many to compete and grow in our modern day economy.
Commodity investments act as a cornerstone or a foundation in order for these countries to find
stability and exit from their lower status stages and into developed country status, Commodity
investing is proving to be not only beneficial to many of these countries economies, but the
world itself.

Works Cited
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Commodities Trading in Singapore - Trade from Singapore - International. Singapore
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Constable Simon. Why Theres No Better Time To Buy Commodities. USA News. News &
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Deaton, Angus. "Commodity Price and Growth in Africa." Journal of Economic Perspectives
Princeton University Publishing Co. (1999): 23-40. Print.
Hanemann, W. The Economic Conception of Water. Water Crisis (2006): 61-91. The Journal
of Alternative Investments. Institutional Investors, Sept 2006. Web 14 Sept. 2016.
Katsushi Imai Raghav Gaiha Ganesh Thapa. "Supply Response to Changes in Agricultural
Commodity Prices in Asian Countries." Economics Discussion Paper Series (November
2008): n. pag(21-32). Manchester 1824. The University of Manchester, Nov. 2008. Web.
05 Oct. 2016.
Rogers, Jim. Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market.
pg(1-124) New York: Random House, 2004. Print
Siegel, Paul. "Export Commodity Production and Broad-Based Rural Development: Coffee and
Cocoa in the Dominican Republic."Virginia Polytechnic Institute & State University.
World Bank, Washington, D.C., 12 May 2014. Web. 27 Sept. 2016.