International Trade Simulation
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RUNNING HEAD: International Trade Simulation
International Trade Simulation
Kylon D. Shipp
June 14, 2013
XECO 212 Week 8 Assignment
University of Phoenix
It's a great opportunity for the country of Rodamia to open its borders for trade. By taking upon an initiative such as this will result in a boost to the nation’s economy and more variety of goods for the nation’s people. With the import of goods it will offer the citizens more choices for their consumer goods and the opportunity to boost sales of goods the country produces through export. In order to make this initiative happen there must be some major research done to determine the best possible conditions for the country to utilize its resources to produce the right goods for export. It’s equally important to determine what goods will be best suited for the nation’s economy. Any miscalculation determining the proper goods to import and export could be tragic for the country’s economic welfare. Performing a series of interviews and running a Production Possibility Frontier (PPF) simulation will offer the information needed to make the best decisions for the country’s future.
Before deciding upon what to import and export it’s important to understand what absolute and comparative advantages are. When it comes to absolute advantages, a product offered by a country is produced at a much lower cost than another country. It would we greatly beneficial for Rodamia to be having an absolute advantage but unfortunately the country does not. However, the country does posses a comparative advantage for producing certain products. It’s a great opportunity for countries to offer goods that can be exported. Some goods are better suited to be produced by certain countries and these are considered a comparative advantage. A comparative advantage is basically something the country possesses that makes them better suited to produce certain goods. Some countries are better agricultural producers, some...
International Trade Simulation
Kylon D. Shipp
June 14, 2013
XECO 212 Week 8 Assignment
University of Phoenix
It's a great opportunity for the country of Rodamia to open its borders for trade. By taking upon an initiative such as this will result in a boost to the nation’s economy and more variety of goods for the nation’s people. With the import of goods it will offer the citizens more choices for their consumer goods and the opportunity to boost sales of goods the country produces through export. In order to make this initiative happen there must be some major research done to determine the best possible conditions for the country to utilize its resources to produce the right goods for export. It’s equally important to determine what goods will be best suited for the nation’s economy. Any miscalculation determining the proper goods to import and export could be tragic for the country’s economic welfare. Performing a series of interviews and running a Production Possibility Frontier (PPF) simulation will offer the information needed to make the best decisions for the country’s future.
Before deciding upon what to import and export it’s important to understand what absolute and comparative advantages are. When it comes to absolute advantages, a product offered by a country is produced at a much lower cost than another country. It would we greatly beneficial for Rodamia to be having an absolute advantage but unfortunately the country does not. However, the country does posses a comparative advantage for producing certain products. It’s a great opportunity for countries to offer goods that can be exported. Some goods are better suited to be produced by certain countries and these are considered a comparative advantage. A comparative advantage is basically something the country possesses that makes them better suited to produce certain goods. Some countries are better agricultural producers, some...