SUBJECT AREA Self improvement
CREATED ON 31st December 2017

Essay about International Trade Simulation

Every market can count on two things; there will always be supply and there'll always be demand. For many nations, supply can't keep up with the demands for the market and when that happens, global trade is sometimes an only alternative. As with anything in life, there are advantages and disadvantages to global trade. One of the significant advantages to international trade is that it enables countries with a surplus of distribution to trade with another country that may have a lack of that same supply. Another advantage is that if a nation is in short supply of a specific product or service that nation can import from other countries. One of the significant disadvantages to global trade is the amount of surplus countries are exporting to other countries. For many countries, this dumping of surplus causes a reduction in the marketplace. Within this global trade simulation, I have been delegated the role of Chief Trade Advisor to the President of Rodamia. Within this position, I am tasked with developing and coordinating international trade, investment policies, and also lead the negotiations with other countries surrounding Rodamia. Rodamia is significantly bigger than its neighboring states (Alfazia, Uthania, and Suntize) and is considering trading with them to supply a more varied and quality merchandise to the country’s people. In this paper we are going to discuss some of the advantages and limitations of global trade struck in “Rodamia and its own neighbors” trade simulation along with comparative and absolute advantages as well as the influences affecting foreign exchange prices. Before we get into the discussion of the exercise, we first need to know what absolute and comparative advantages are. A comparative advantage...

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