Trade Simulation - T rade Simulation Michelle Johnson...

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Trade Simulation Michelle Johnson Xeco/212 7/10/2011 Anna Gonzalez
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What would you do if you thought that trade was the best situation to get your country out of its economic slump? I would recommend many things to the President of Rodamia. Starting with knowing what is trading and what will trading do for their country. In the writing below I will talking about the advantages and disadvantage of international trading. Also I will be discussing the influence affecting foreign exchange rates. The advantages and limitations of International Trade that was identified in this simulation is that the level of tariff that I have chosen to charge is higher than what is needed to equate the export price of watches in Rodamia to the market value of watches. There are three facts that I must prove in order for the product to be sold in the importing country at prices less than the domestic price of the product, the availability of the product at lower prices causes material injury to the domestic, and that there is a casual link between the availability of the product at the lower price. Once I prove these facts, the market value of the dumped product is calculated. Based that I must protect the infant domestic industry is to give it time to attain productive efficiency which was a good decision that I made. But considering that the free trade leads to greater overall welfare for the nations concerned than trade with restrictions, not
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Trade Simulation - T rade Simulation Michelle Johnson...

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