ABSTRACT
Variations in West European demand therefore have an important impact on prices of US soybeans, and on the income of US soybean growers and the US trade balance. Economists have been only moderately successful in predicting the changes in the demand for soybean products in the Common Market. This is due in part to the failure to incorporate specific Common Market policy factors into the econometric models that have been used. Grades and standards for grain have three purposes in a market economy: to classify all grain into a few homogeneous categories to facilitate trade, to permit market transactions on the basis of description, and to enable buyers to identify relative value for various end uses. License arrangements make it possible for two or more parties to exploit new soybean varieties and technology. Such arrangements allow marketing organizations to circumvent the potential high cost of breeding and development programs.
