Essay on International Trade Concepts Simulation - 827 Words

International Trade Concepts Simulation Abstract The following paper will present information found in a simulation based on international trade concepts. Key points found from the reading will be noted and concepts discussed will be shown integrated in the workplace. International Trade Concepts Simulation International trade has become a very important means of survival for global economies in this day and age. As countries continue to grow and resources become smaller, trade with other countries who have provide certain resources in a greater capacity becomes very lucrative. At the same time, those same countries must be able to offer something of similar value. Through this ability of trade, this allows countries to†¦show more content†¦Another disadvantage that can occur happens when free trade agreements are allowed with one country but not another. Although no free trade agreements with larger countries are possible when bargaining power is stronger with them, it can still lead to higher imports and caps on exports. Free trade agreements do allow smaller and weaker countries the ability to grow their industries and possibly provide more jobs for both trade partners in the long run. There were four key points relevant to the readings that were apparent in the simulation. A country’s debts are usually judged in comparison to their assets. (Colander, 2006) The simulation involved certain aspects of such when corn was considered to be in excess from importation. Surpluses were also identified when one country was considered dumping their imports of watches onto the country of Rodamia. This endangered the local watch industry as prices from the imported watch goods were undercutting the local market. In order to level the excess, tariffs were set. Protectionism was also discussed as fledgling markets of Rodamia, such as corn, was in need of growth. Once again the use of tariffs and quotas were set in order to protect the local industry. Outsourcing was also touched upon as free trade agreements could possibly open jobs in weaker neighboring countries that can offer comparative work as well.Show MoreRelatedEssay on International Trade Simulation987 Wo rds   |  4 Pagessummarize the International Trade Simulation, explain the basic concept of International Trade, emphasize the four key points from the reading assignments in the simulation, and apply these concepts to my workplace. Simulation Summary In the International Trade simulation, you are the Trade Representative of a small country called Rodamia. 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