International Trade Simulation and Report
- Submitted by: roobee52
- Views: 2840
- Category: Other
- Date Submitted: 09/06/2010 06:38 PM
- Pages: 7
- Report this Essay
International Trade Simulation and Report
Taruh Cravens, Melody Jones, Geneva George-Williams, Ruby Morgan, Nicole Southerland
ECO/212
Blake Bennett
International Trade Simulation and Report
This paper is a team correlation on the knowledge gained from our course of study and how the concepts are applied, how international trade affects the U.S, economy, and addresses the four key factors from our weekly reading assignments that are shown in the stimulation.
The simulation identified Rodamia’s bordering countries provide an opportunity for international trade and investments that could greatly benefit Rodamia. International trade with other countries would give consumers more choices in price and quality of goods. The domestic producers would increase production to meet market demands in other countries, producing more capital for investing in new avenues. The interaction of trade between the countries will make the countries more vibrant and wealthier.
Limitations of international trade are placed in the form of tariffs, quotas, and regulations. These limitations offer protection in certain circumstances but can have negative if used to retaliate for reasons such as political differences (Colander, 2004).
The simulation emphasized four key points from the team’s weekly reading assignments, including comparative advantage, the principle of increasing marginal opportunity, the protection possibility curve, and limitations on international trade. The following details the four key points.
1. Comparative advantage is the ability of one country to produce a good or service at the lower opportunity cost than a competing country (Hubbard & O’Brian, 2010). The simulation showed Rodamia produced cheese and DVDs with a lower opportunity cost than corn or watches therefore Rodamia should export cheese and DVDs and import corn and watches (University of Phoenix, 2010).
2. The principle of increasing marginal opportunity cost says...
Taruh Cravens, Melody Jones, Geneva George-Williams, Ruby Morgan, Nicole Southerland
ECO/212
Blake Bennett
International Trade Simulation and Report
This paper is a team correlation on the knowledge gained from our course of study and how the concepts are applied, how international trade affects the U.S, economy, and addresses the four key factors from our weekly reading assignments that are shown in the stimulation.
The simulation identified Rodamia’s bordering countries provide an opportunity for international trade and investments that could greatly benefit Rodamia. International trade with other countries would give consumers more choices in price and quality of goods. The domestic producers would increase production to meet market demands in other countries, producing more capital for investing in new avenues. The interaction of trade between the countries will make the countries more vibrant and wealthier.
Limitations of international trade are placed in the form of tariffs, quotas, and regulations. These limitations offer protection in certain circumstances but can have negative if used to retaliate for reasons such as political differences (Colander, 2004).
The simulation emphasized four key points from the team’s weekly reading assignments, including comparative advantage, the principle of increasing marginal opportunity, the protection possibility curve, and limitations on international trade. The following details the four key points.
1. Comparative advantage is the ability of one country to produce a good or service at the lower opportunity cost than a competing country (Hubbard & O’Brian, 2010). The simulation showed Rodamia produced cheese and DVDs with a lower opportunity cost than corn or watches therefore Rodamia should export cheese and DVDs and import corn and watches (University of Phoenix, 2010).
2. The principle of increasing marginal opportunity cost says...