International Trade Simulation

Topics: International trade, International economics, Mercantilism Pages: 3 (1095 words) Published: March 6, 2011
International Trade Simulation
October 17, 2010

I am advising the president of Rodamia recommendations for international trade. International trade is the exchanging of goods and services with one another. Many countries have particular resources that are not obtainable in the other, to meet the desires and wants of both countries so they trade. Many advantages and limits are concerned with trading. Benefits occur for each country, but there are many additional limits put into place to manage the amount and quality of international trade. Specific issues have an effect on international trade such as foreign exchange rates and government policies. Groups such as World Trade Organization who over looks international trade along with their members, making sure that rules and agreements are followed. Many advantages to international trade, and few limitations that can be encountered in this simulation. One advantage of international trade is that each country has a choice. A choice whether to impose trade barriers or to engage in free trade. One limitation of international trade is the time a country decides to impose a tariff or a quota on another country; there are always consequences to these decisions. Sometimes the best decision is not made and then one has to deal with what comes out of it good or bad. A country can import products manufactured more efficiently in other countries. Generating these occupations would have an enormous influence on our economy, but more so the immediate economy the company is based in. In general it would inflate our tax base, and assist the entire system. These limits come more on the importing side of things. No economy would want to import more than they export causing a deficit. Due to this, a country would like to enforce tariffs and import quotas to make sure that the domestic producers do not drop their market share at home. If this happens, no less than their small loss at home is overshadowed...
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