Trade Simulation

Since countries cannot or rather should not live in isolation, in order for them to sell their surplus products or services we have to mutually share our prosperities, technical know-how, therefore undertaking trade with each other. The world’s economies are interdependent and the economic progress of any nation depends on its ties with other countries. Countries requires markets for its goods and services, and these markets are available both locally and internationally thus International Trade (Shukla, 2009). On the local level, a country’s citizens can make use of the services and products for their own personal consumption, while on the international level a government will at times play a major role in the selling of a product by an international producer of another country. There were several advantages and disadvantages of international trade in the simulation, but one major advantage is the monetary gains that a country has when indulging in trade with other countries. Another I think is an extreme advantage is that engaging in trade with other countries, will force local producers into improving the quality of their products since they will essentially be in competition with others for them.

A disadvantage of international trade is that the richer countries could try and influence the local political matters in other countries, thereby gaining control over those nations that are weaker. Another is that the local industries could become overshadowed by their international counterparts. Engaging in international trade is beneficial to the world economy as it adds money to the coffers of the world at large, and also each country can benefit monetarily if it is able to dispose of its surplus goods after meeting the requirements of course of the local people(Shukla ,2009).

The definition of comparative advantage is that it needs a minimum of two goods and at least two places where both goods can be produced even with scarce resources... Many