International Trade Simulation

International Trade Simulation - International Trade...

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International Trade Simulation Loretta Campbell Principles of Economics Eugene Kaufman April 3, 2011 Loretta Campbell April 3, 2011
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International trading is an important feature in our economy as well as the economy of other countries. Trading is important because it give countries the opportunity to receive goods that are unavailable to them in exchange for their goods that another country doesn’t have access to. A good idea for trade is if a country was in need of oil and another country has an abundant amount available it would make sense for that country to trade something they have an abundant amount of for the oil. For this simulation I would be advising the President of Rodamia recommendations for international trade. This simulation will provide reasons for international trade and help me determine which countries to trade with, what products to import or export. The simulation will also help with determining when to impose trade restrictions like tariffs and quotas, and when to negotiate trade agreement. Rodamia is a large country in comparison to its neighbors, in terms of population, area and level of economic development. Most of Rodamia domestic product comes from agriculture, mainly: corn, wheat, cotton, diary, and poultry products which are about four percent. About thirty percent comes from industry and sixty six percent from services. There are three countries that surround Rodamia which are Alfazia, Utania, And Suntize and they have considered trading with these countries because this will lead to greater benefits. If Rodamia trades with these countries it will allow them to provide a more diverse price and quality of products to its consumers. Trading can add domestic producers and expand their makets to other countries and Rodamia capital will earn more revenue
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This note was uploaded on 05/29/2011 for the course POS 110 taught by Professor Britt,j during the Spring '10 term at University of Phoenix.

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International Trade Simulation - International Trade...

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