Preface
Published online by Cambridge University Press: 23 December 2009
Summary
As I was completing this book, in the weeks after Hurricane Katrina struck New Orleans, the price of petrol in some parts of the United Kingdom reached £1 per litre; this was, in part, because the destruction of refining facilities in the Gulf of Mexico meant that American oil companies were seeking to buy up supplies in Europe, while the price of crude oil on the global market passed $70 per barrel. This can be seen as an indication of the awesome power of the modern world-trade system to mobilise goods from across the globe; there is a shortfall in supply leading to a price rise, the news is communicated almost instantaneously and the market responds, shipping oil thousands of miles to where the demand is greatest. The demands of resentful road hauliers that the government should intervene to lower prices and protect their profits are based on a complete misunderstanding of basic economics; the market simply reflects the hard realities of supply and demand, and petrol subsidies or a reduction in fuel tax could defeat their own object by stimulating demand and pushing prices up even further. Such developments emphasise the relative powerlessness of states, let alone individuals, in the face of market forces; they are a forcible reminder that, within a globalised economy, even the basic rhythms of everyday life can now be affected by events thousands of miles away – an experience which, as a regular buyer of Fairtrade products, I naively tend to associate more with downtrodden coffee and cocoa producers in the Third World.
- Type
- Chapter
- Information
- Trade in Classical Antiquity , pp. xi - xivPublisher: Cambridge University PressPrint publication year: 2007