ABSTRACT
This chapter aims to consider the issues and what mechanisms are researched when commodity prices are heavily fluctuating and what functions are accomplished by such mechanisms. It provides an overview on the types of agreement, analytical tools to be employed, and investigates how the types are organized using the analytical tools. The chapter looks at the short history of the International Wheat Agreement. It describes the situation of international commodity agreements. However, in the sense of an international commodity market, countries producing tin and natural rubber whose international commodity agreements abolished their functions for price stabilization would have a new opportunity to establish a producers' cartel. The international commodity agreement is an international arrangement to achieve price and income stability on primary commodities, which has various schemes. The standard argument is to ask if price stabilization is feasible and to ask if economic welfare could be increased with the attempt.
