1. Effect of Crude Oil price on World Natural Rubber Price Group Yen

2. Introduction Important - Local exporters need to know world market price. - They should have tool to predict world market price before purchase at the local auction. - Then only they can be success in their business. Objectives To measure magnitude of effect of crude oil price changes on to world natural rubber prices.

3. Factors Effecting on Natural rubber Price - Crude oil price Can Stakeholders in Natural Rubber Hedge in Crude Oil? An ex-ante analysis by Nilanjan Ghosh and Harish Purohit They found in their analysis that Natural rubber Price and Crude oil price have a positive correlation. - GDP growth of industrial countries - Climatic changes Theory - Relationship between crude oil price and synthetic rubber price. - Synthetic rubber price and natural rubber price - Cross price elasticity

4. Cross price elasticity EQbPm = Qb × Pm Pm × Qb EQbPm = Percentage change in the quantity demand of natural rubber from a 1 percent change in crude oil price Qb = Quantity of demand of natural rubber Pm = Price of crude oil

5. Hypothesis -There is a relationship between crude oil price and world natural rubber price. Methodology Population -world natural rubber industry Sample – monthly crude oil price and natural rubber price. Sample Size – Ten years data or 120 months data

6. Sampling method -What they used ? Measurements - Cross price elasticity between crude oil and natural rubber