xeco212 week 8 due day 7

xeco212 week 8 due day 7 - International Trade Simulation 1...

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International Trade Simulation 1 International Trade Simulation Jasmyne Carson Phoenix xeco212 Date: 09/12/10 For the whole world and for each country, free trade needs to be done as a general policy and (saving any possible gains through using the tariffs as a bargaining weapon) for each country
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International Trade Simulation 2 irrespective of the policy of the other countries. “There are, however, circumstances in which there is more to be said for protective tariffs or some other form of State regulation of international trade” (International trade simulation). International trade must be governed by prices, but the prices of goods produced in different countries need not be proportionate to their absolute labor costs. This is international trade simulation in Rodmania. The country’s import, export and production will be analyzed by the trade representative. Moreover, trade representative are responsible to impose tariffs and trade restrictions and also help in agreements. “Rodmania GDP comes from agriculture; mainly wheat, corn, cotton and dairy and poultry products, 30% comes from industry and 66% comes from services” (International Trade simulation). There are many countries that have comparative advantage in products. If the country export products of comparative advantage to other countries and import the products that other countries has comparative advantages in, then everyone can gain profit. This gain means many more choices for consumers, big market for producers and balance of trade. “Comparative advantage can arise from many factors- natural resources; availability and relative efficiency of factors of productions, and the state of technology are some of them”. This paper will identify advantage,
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This note was uploaded on 02/12/2012 for the course ALL all taught by Professor All during the Spring '10 term at University of Phoenix.

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xeco212 week 8 due day 7 - International Trade Simulation 1...

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