Diaz+Jose+Week+5+Trade+Simulation+Paper

Diaz+Jose+Week+5+Trade+Simulation+Paper - Trade Concepts...

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Trade Concepts Simulation Paper Running Head: TRADE CONCEPTS SIMULATION PAPER Trade Concepts Simulation Paper Jose Diaz ECO 372 - Macroeconomics Tina Carter University of Phoenix 1
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Trade Concepts Simulation Paper Trade Concepts Simulation Paper In the Trade Simulation we encountered a variety of barriers and obstacles. Some of these natural economic limitations included consequences and repercussions of implementing tariffs and quotas on trading partners. Another limitation we encountered included having to manage prices as dumping was observed in the marketplace. As trade partners dumped products in trade at prices below domestic prices, we had to manage price points to prevent economic loss in the neighboring trade partners economy. We also experienced advantages that included increased revenues from exporting goods of high production. Another advantage we found was maximizing trading partners production by importing their most heavily produced goods. This worked wonders for foreign relations as good will was served by having consideration for their economic strengths and weaknesses. International trade is the lifeblood of the US Economy. Without imports we would not be able to obtain goods that we as Americans have come to accept as routine, run of the mil goods. Without export we would not be able to maintain such a high GDP and this maintain a high level of debt. The effects international trade has on the US Economy are economic strength (if you consider the GDP), inflation risk (if you consider the size of the deficit) and job loss (if you consider the outsourcing of jobs). GDP is the gauge to which we measure our growth. Having the luxury of exporting goods and services helps maintain a high GDP. By importing such a high level of goods into the country makes us dependent of foreign markets. We are reliant on foreign oil, cheap Wal-Mart imports from China and automobiles from Asia and Europe. The heavy level of imports stresses the high deficits we have been running since 2002. These high deficits give us the added burdens of carrying so much debt. The final effect international trade has on the US Economy is 2
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Trade Concepts Simulation Paper job loss. There has been such a heavy amount of outsourcing over the last 10 years that the workforce has little place to turn to find adequate employment. As companies seek alternatives
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This note was uploaded on 06/29/2010 for the course ECO 372 taught by Professor Tinacarter during the Spring '10 term at University of Phoenix.

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Diaz+Jose+Week+5+Trade+Simulation+Paper - Trade Concepts...

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