School Work

Topics: International trade, Export, Economics Pages: 2 (643 words) Published: January 20, 2013
In jumping into international trade a country would ideally want to maximize profits and maximize the impact of opportunity costs associated with importing and exporting goods and services. The ideal situation for a country involved in international trade would be the exportation of specialized goods that can be efficiently produced and the importation of goods that are produced elsewhere that are produced under similar conditions. Doing so creates reasonably priced goods that are desirable to other countries. The contents of the paper will discuss the advantages and limitations of international trade as identified in the simulation and will identify four key points from the reading assignments that were emphasized in the simulation. In addition there will be a discussion on the application of what was learned in the simulation to a familiar organization. Rodamia is a large country in comparison to its neighbors, in terms of population, area and level of economic development. About four percent of Rodamia's Gross Domestic Product comes from agriculture, mainly: corn, wheat, cotton, dairy and poultry products; 30%   from industry and 66% from services. Rodamia is surrounded by three countries, (Alfazia, Uthania, Suntize), and is considering trading with these countries because this will lead to greater benefits. Trading will enable Rodamia to provide a more diverse price and quality of products to its consumers. Domestic producers can expand their markets to other countries and Rodamia capital gets new avenues of investments. All these aspects will add to making the economy more sparkling and the country richer. International Trade is important to many countries because it allows a country to import products or resources that may be difficult to produce locally. As a result, this enhances the country’s growth and economic wealth, and also allows the country to focus on increasing the production of resources or goods that the country can then export elsewhere. For...
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