{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Brandon_T_wk_8_assignment - International Trade Simulation...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
International Trade Simulation 1 . . . . . . . . . . . . . . . . . . International Trade Simulation Brandon Tate XECO-212 November 06, 2011 Angela Smith . . .
Background image of page 1

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

View Full Document Right Arrow Icon
International Trade Simulation 2 Through international trade, every country worldwide can benefit by either importation or exportation of goods and services. The balance that can be achieved through this shared use of resources fosters a healthy global economy. The foundation of our economy today is one which is defined by both disadvantages and advantages. Trade from foreign countries is a controversial issue among all economists and many politicians. The first goal in trade is to allow each country’s economy remain fruitful and productive through the provision of goods and services to each country that are not readily available in the other. This is true for all countries and all goods and services. If international trade did not take place, then some products could not even be produced. The potential for economic growth would be smothered and the demand supply cycle would be entirely different than it is today. The country making trade beyond its own borders has to have some significant advantage or it cannot remain competitive in that market. Each country has some type of product or service that it can provide to other countries. This is true in all levels of manufacture, production and labor supply. ‘Absolute and comparative advantage’ is a term that indicates that by nature each type of advantage arises from different circumstances. An example of absolute advantage occurs would be a producer who can manufacture a series of products at a higher rate
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}