International Trade Simulation
University of Phoenix
March 5, 2007 International Trade Simulation
This simulation will provide reasons for international trade and help me determine which countries to trade with, what products to import or export. Also, help with determining when to impose trade restrictions like: tariffs and quotas, and when to negotiate trade agreements. Overall, the story in this simulation has cast me in the role of the Trade Representative of Rodamia, where my office develops and coordinates international trade and investment policies, and leads negotiations with other countries on above mentioned subjects.
I am the president's Chief Trade Advisor, …show more content…
1. Will you go ahead with negotiations for FTAs?
2. Which of the two countries would you recommend for FTA negotiations?
I would negotiate FTAs with Alfazia and Uthania. I would negotiate free trade agreements with both countries, because it will help me reap the benefits of exploring both markets, which will lead to increased demand of products from Rodamia and I will also have more avenues for investment. An FTA can enable the flow of investment between countries which leads to more employment in the country where investment is taking place and better returns on capital for the investing country. The benefits of an FTA are similar to the benefits of free trade among all countries. This is why so much emphasis is put on lowering trade barriers among all countries for all products and the reason why organizations like the World Trade Organization (WTO) exist.
What are the advantages and limitations of International Trade identified in the simulation?
The advantages of International trade in this simulation are potential gains, potential employment opportunities, improved economy and more of a diversity of products for consumers. The limitations are tariffs, quotas.
List four key points from the reading assignments that were emphasized in this simulation.
Four key points in this simulation were comparative advantage, free trade agreements, WTO, infant industry.
How can you apply what you learned