The following paper will present information found in a simulation based on international trade concepts. Key points found from the reading will be noted and concepts discussed will be shown integrated in the workplace.
International Trade Concepts Simulation
International trade has become a very important means of survival for global economies in this day and age. As countries continue to grow and resources become smaller, trade with other countries who have provide certain resources in a greater capacity becomes very lucrative. At the same time, those same countries must be able to offer something of similar value. Through this ability of trade, this allows countries to increase their production capabilities by specializing in products it can produce more efficiently. In this paper, we will observe how international trade concepts affect the growth and production ability of a country through certain decisions and how their application can be applied in the real world. In the simulation, the country of Rodamia was opening its borders to international trade. We had to determine what resources were going to be exported and imported from the neighboring countries. Depending on whether or not certain products were being dumped or if local industries needed help in growth, concepts such as tariffs, quotas, and the implementation of free trade between countries were implemented. By opening up Rodamia’s borders to trade, it was imperative to see what resources were created more efficiently and took fewer resources from others to make in comparison to the neighboring countries. There are advantages and disadvantages to international trade. The opening of trade with neighboring countries presented the possibilities of making more for the country through our own resource specialization. This also helps the growth of certain industries in all countries involved in trade. Applying tariffs and quotas help...