INTERNATIONAL TRADE SIMULATION AND REPORT

INTERNATIONAL TRADE SIMULATION AND REPORT - International...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
International Trade 1 Running head: INTERNATIONAL TRADE SIMULATION AND REPORT International Trade Simulation and Report Sherrard Jones, Tracy Wilson, Shari Spencer Economics 212- Week 5 Assignment Learning team E Francisco Penafiel University of Phoenix
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
International trade is exchange of capital, goods, and services across international borders or territories. International trade has been a major driver of global growth and prosperity over the last fifty years. Barriers to trade have fallen significantly over the last half-century, but some products, particularly in agriculture and labor-intensive sectors, remain subject to high levels of protection. International trade remains a subject of intense debate among policy-makers and the wider public. While expanding export markets are widely accepted as beneficial, increases in imports can be seen as threatening, replacing domestic production with goods and services from abroad. ADVANTAGES OF INTERNATIONAL TRADE: Enhance your domestic competitiveness Increase sales and profits Gain your global market share Reduce dependence on existing markets Exploit international trade technology Reduce dependence on existing markets Exploit international trade technology Extend sales potential of existing products Stabilize seasonal market fluctuations Enhance potential for expansion of your business Sell excess production capacity Maintain cost competitiveness in your domestic market
Background image of page 2
3 DISADVANTAGES OF INTERNATIONAL TRADE: You may need to wait for long-term gains Hire staff to launch international trading Modify your product or packaging Develop new promotional material Incur added administrative costs Dedicate personnel for traveling Wait long for payments Apply for additional financing Deal with special licenses and regulations Simulation Key Points International trade has many benefits and key points that must be taken into consideration: gains and losses, tariffs, trade restrictions, and free trade. Gains and losses can be summarized by how much the economy will gain to offset how much it will lose in trade. If the gains outweigh the losses, trade will be beneficial. The overall goal of trade is to raise the Gross Domestic Product (GDP) and sustain a healthy economy. The second key point involves tariffs; taxes imposed on a country’s imports. Tariffs are used to raise the cost of an import in order to give a domestic supplier an opportunity to be competitive in the same market. If import goods cost less than domestic goods, domestic companies will suffer causing a loss of jobs and eventually the business may be forced to close. Tariffs can provide opportunity for new or lesser businesses and assist in repairing a declining
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/21/2011 for the course KAPLAN UNI MT 140 taught by Professor Thum during the Spring '10 term at Kaplan University.

Page1 / 8

INTERNATIONAL TRADE SIMULATION AND REPORT - International...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online