international trade Simulation
The simulation that we worked on for the Internatonal trade assignment involved four countires; Rodamia, Uthania, Suntize, and Alfazin. In the simulation the economic survival of these countries depended on the availability factor and utilization of their countries resources. Each country had different strengths and weaknesses. The economic strengths of Rodamia were agriculture, industry and services. Products produced in Rodmia were chocolate products and confections, similar to their neighbor Uthania. Uthania economic stronholds were corn, coal and other minerals. Alfazins agrarian industry was solid. Rice and cotton were also part of Alfazins primary crops. Suntize had a different situation, its main production centered around electronic goods. These countries traded and this created the world of import, including tariffs, quotas, imports and exports. In the simulation, Rodamia is a growing country, getting involved with these surrounding countries in a economic globalization situation would increase its growth even further.
International trade has the capability to escalate the competitive advantage or opportunity cost of a country. Many countries have recognized that international trade has become a necessity due to the comparative advantage that is inflated by production of similar products and services generated by other countries. Larger countries have the absolute advantage over smaller countries, as it is capable of producing larger volumes at a lower cost. It is very hard for a small country to compete with a large country. The smaller country will need to make decisions and sacrafices of other products in order to keep up with the volumes created by the large country. Larger countries have an advantage due to the possibility of technological advances, lower labor costs, more manpower creating more volume.
The Essay on Countries trade products
In the world market, countries trade products they wouldn’t be able to produce on their own. Countries like Cuba specializes in cigar production, Japan in electronics, and Russia in rocket technology. However, even if a country has an absolute advantage in producing all goods, they still will benefit from trade. Many economic factors are involved with trade. Among the major factors are ...
When contrasting these concepts with Rodemia and the other involved countries we see that Rodamias major exports are DVD playes and cheese. Thes two exports provide them with a competitive advantage. Absolute advantage is not a requirement or necessity. What is mostly required is is consistency in trading with neighboring countries that efficiently generate products that are not your countries primary crop, service or product. A good strategy for Rodamia would be to import corn from Uthania and electronic components from Suntize.
When a country joins the international trading circle it gives that country more time to specialize in producing what goods it is best at. International trading helps a country improve and advance the production of their primary goods and services. It also makes the other products and services more acquirable and readily available. Uthania desires to have cheese with their corn but cheese is not one of their major products. If Uthania imports their cheese from Rodamia and exports their corn to Rodamia both countries will be able to enjoy larger amounts of both through international trading. With the increase of production through international trading of Rodamia and surrounding countries, economic development will flourish. economic growth brings about better living conditions and prosperity. Economic growth makes a country more attractive to other countries and brings more industry and service to the country and more jobs will be created.
The Essay on Toward a Typology of Food Security in Developing Countries,Governance Division, and International Food Policy Research Institute.
Global Food Supplies Introduction Question 1 Globalization and technology enable food producers to access a wider market, increase opportunities, and competition with food supply and consumption. Countries and agricultural multinationals position their supply systems, according tothe global market. Food supply requires a systematic analysis of the food production processes and ...
Another benefit of economic growth from international trading is the political side of it all. The best and easiest way to be established with many different countries is through the political ties it brings with it. Uthania and Rodamia would have a better relationship without any conflicts and a better way to resolve any issues.
Taking control of many advantages in international trading you are bound to have some disadvantages. Suntize imposed cheap prices on watches that were exported to Rodamia. This is called dumping and brought about an alarming situation to the watch makers industry. Because of this the companies may lose lots of money and maybe even their businesses. Only because now that watches are at a surplus there is too much competition in the trading industry for watches.
So now Rodamia imposes tax rate increases and quotas as a way to control the dumping in its country. This may not always be the best way to handle the situation for it can cause the retaliation by the other country or countries. The other countries may take this as Rodamia lashing out and also affect the exports of products from Rodamia. Even though the other countries know that these measures must be taken it still may not be the best move to make. When demand calls for supply, it must be met. And the demand of products and services will also increase the demand of that countries money which will increase the value of that countries money. Then on the back end with the increase of the money supply the value of the money will depreciate. This is why money must be regulated to keep the value at a steady rate.
A countries currency is regulated by the exchange rate. It’s a powerful force in international trading causes it balances out trading with the different countries. If the value of any of the country’s currency decrease all exported products would be sold at a lower rate of exchange. There would be an increase in the demand for these countries goods because the prices would be cheap. GDP and the trading balance will increase but eventually this will make their export prices more expensive while import prices are less. Demand for products and services will be less and imported goods more. This backward effect will result in the country’s GDP decreasing.
The Term Paper on How Good Packaging Design Increase Product Sales
In the era of competitiveness, every company is going to increase profits by boosting their product sales. In fact, it is universally acknowledged that product sales can be affected by a number of factors such as advertising, sales promotion, personal selling and public relation (PR). Nonetheless, one of the most significant sales' influencers is packaging design. It has been used as a crucial ...
International trading will be an important step for Rodamia and their surrounding countries. Competitive advantages will be an important aspect for these countries and they must watch as to what products gives them this advantage. Keep special attention to the exchange rate and their governments. In keeping a close eye on their economy and the economy of the neighboring countries, each will know what steps to take or what right decisions to make concerning the other countries.