Question

EFFECTS OF THE RUSSIAN - UKRAINE WAR
Commodity prices, including wheat, corn, have surged since Russia began its
invasion of Ukraine on 24/02/2022. Russia & Ukraine account for about 29% and
19% of global wheat and maize exports.
With Ukraine ports closed and much of Russian grain supply frozen by Western
sanctions, there are fears of tightening supplies will lead to shortages in importing
countries.
South Africa, a net exporter of maize, imports about 40% of its wheat.
The conflict will have an impact on the International wheat prices which ultimately
reflect in in SA wheat prices as well.
Adapted: econ 3x3 :editor's corner March
2022
In view of the above Information conduct a research and write a report on the impact
of the Russian - Ukraine war on the South African Economy
In your report focus on the following issues:
13
• Highlight the negative externalities that might occur in the South African
Economy, due to the above-mentioned war.
• Graphically illustrate the impact of the war on the prices of wheat.
10
• Useful measures that the South African government do (or can do) to mitigate 12
the impact of the war.

Answer 1

Some of the negative externalities that may occur to South Africa due to the russia-ukraine war could be:

1. Trade between the warring countries and South Africa would be affected.
2. Food security would be affected*
3. It would lead to an issue in financial security.**

*Facts to support this:

- Ukraine and Russia are two of the biggest producers of wheat and oil seeds, which have been key drivers of global food prices since 2020.

- Russia & Ukraine account for about 29% and 19% of global wheat and maize exports.

**

- In addition to higher global grain prices, the Brent crude oil price breached $100/barrel for the first time since 2014 towards the end of the week.

Hope this helps. Read more about negative externalities here: brainly.com/question/1362529

- profparis