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Melissa Herring
International Trade Debate
Week 8
When it comes to International Trade one of the biggest advantages that I had found in the simulation was the opportunity to be able to negotiate a Free Trade Agreement with another country. This left open the possibility to really help a developing country to prosper and be placed “on the map” so to speak. We would be able to have more resources available to us, the ability to cut our own production costs and they would be afforded the opportunity to produce new jobs and generate needed income to help their economy become stable and healthy. All these opportunities would greatly affect each economy positively. We would be wealthier, have good stable economies, be able to decrease unemployment even more, and be able to have more products available to sell.
One disadvantage to International Trade I seen in the simulation was when trade between two countries was open, the exporting country was “dumping” their goods and selling them at a lower cost than in their own country and of that in the importing country. This was hurting the production of the importing country and they were seeing losses in sales and thus a decrease in their economy because so many people were buying the lower cost product. The end result was the ability to choose to put a quota or a tariff on the exporting country to try and ease the burden. A tariff is a tax placed on the goods that are imported and a quota is a restriction that is placed on a country and limits the amount of goods they are able to export at any given time. This could have a negative impact because they are not making money off their products and they end of having a surplus of goods that are just sitting and not being put to use.
Absolute advantage is when a country or business has the ability to produce more of a product or provide more of a service then their competitors from other countries or businesses while using the same amount of resources as their...
International Trade Debate
Week 8
When it comes to International Trade one of the biggest advantages that I had found in the simulation was the opportunity to be able to negotiate a Free Trade Agreement with another country. This left open the possibility to really help a developing country to prosper and be placed “on the map” so to speak. We would be able to have more resources available to us, the ability to cut our own production costs and they would be afforded the opportunity to produce new jobs and generate needed income to help their economy become stable and healthy. All these opportunities would greatly affect each economy positively. We would be wealthier, have good stable economies, be able to decrease unemployment even more, and be able to have more products available to sell.
One disadvantage to International Trade I seen in the simulation was when trade between two countries was open, the exporting country was “dumping” their goods and selling them at a lower cost than in their own country and of that in the importing country. This was hurting the production of the importing country and they were seeing losses in sales and thus a decrease in their economy because so many people were buying the lower cost product. The end result was the ability to choose to put a quota or a tariff on the exporting country to try and ease the burden. A tariff is a tax placed on the goods that are imported and a quota is a restriction that is placed on a country and limits the amount of goods they are able to export at any given time. This could have a negative impact because they are not making money off their products and they end of having a surplus of goods that are just sitting and not being put to use.
Absolute advantage is when a country or business has the ability to produce more of a product or provide more of a service then their competitors from other countries or businesses while using the same amount of resources as their...