International Trade Simulation

International Trade Simulation

Axia College - University of Phoenix

The international trade simulation has advantages and disadvantages for each countries needs. First each countries should have an idea of their products of absolute or comparative advantages in exporting and importing goods to other countries. The country trade permit the access of a larger diversity of goods to help stimulate their economies. At a cost the country is willing to exchange certain resources that are not available in their country for goods and services with countries surrounding their border that will allow the needs of both countries. This international trade simulation is center around the country Rodamia and it surrounding allied of Alfazia, Suntize, and Ulthania interacting in trading exporting products from Rodamia and importing products to Rodamia.

The country Rodamia international trade in resource goods and services with another allied, is to meet the desires of both countries with additional limits put into position in managing the quantity and quality of traded products. The international trading between countries permit’s the comparative and absolute advantages effect of import quota and tariff typically not accessible domestically; such as Rodamia exported trading of DVD Players with Alfazia imported corn as a trading partner. The simulation of Rodamia appearing at the beginning to determine which allied around the border had a comparative advantage and absolute advantages. To get an advantage other countries would have to produce a certain good at lower prices to compete. Rodamia produced cheese as an import and DVD as an export because selling their cheese to buyer in other countries become a comparative advantage at a lower price. According Mankiw (2010), “all countries can benefit from trading with one another because trade allows each country to specialize in ding what it does best.”

Advantage and Limitation

In the simulation there were many advantage to...