...International trade debate The strength of the dollar on domestic and global economy is very tangible throughout the world but it needs to be that way because a strong dollar could hurt exports into other countries and the U.S also, a strong dollar makes exports from the U.S more expensive to foreign consumers and buyers. The high tariffs and quotas that the United States uses to restrict trade with foreign countries are put in place to limit or restrict products and produce that enter the U.S. Tariffs and quantities restrictions (commonly known as import quotas) both serves the purpose to control the amount of foreign products that enter the domestic markets to be sold to consumers and buyers many countries can’t afford a weak dollar because the strength of the dollar versus the currencies of chronic surplus countries may be counterintuitive.. Tariffs are taxes that are levied on imported goods that enter country from other countries for example a major manufacturing companies that do a lot of business in different countries such as John Deere could see their sales fall by a stronger dollar and the U.S economy would need to increase their international sales to make up for restrained domestic spending a stronger dollar will result in a major loss in international sales and also constrain the U.S. GDP growth. The benefits from tariffs and quotas that are put in placed on countries to restrict their imports, sometimes they impose these quotas and sometimes they impose tariffs...
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...International Trade Simulation and Report The advantage of international trade is countries with certain quantity, quality, and efficient production of goods and services can maximize their country’s wealth. Developing country’s increase sales and revenue through production expansion. International trade increases a country’s gross domestic product (GDP) by increasing the production of products sold to other countries. The free trade agreement between Rodamia, Uthania, and Suntize allowed each country to more efficiently use their resources to increase wealth through the comparative advantage of their export commodity. The flipside of international trade is another country’s ability to produce an export more efficiently than the importing country, causing domestic producers and firms to lose revenue or the opportunity for additional revenue. For example, if Rodamia continues a free trade agreement with Uthania for imports of corn, Rodamia misses the opportunity to become a large producer and net exporter of corn – hurting domestic producers and firms. To counteract the loss of increase revenue for domestic producers and firms, the Rodamia government can impose a tariff – place a tax on the corn or limit the amount of corn imported from Uthania – a quota. The government placing a tariff or quota on corn imported from Uthania protects domestic producers and firms from cheaper imports of corn and affords time to develop efficiency...
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...International Trade Simulation and Report Samuel xxxxxxxxx ECO 212 May 07, 2012 Dr. Holscraft International Trade Simulation and Report Over the last few years the United States of America has been in an economic crisis. The economy has been affected badly by layoffs, factories closing down, and corporations needing bail outs. Whenever there is a high unemployment rate the economy heavily affected by the large number of lost laborers. Without laborers and factories to produce goods and services international trade becomes affected. International trade not only helps the United States economy but, also it helps the global economy as well. International trade provides numerous advantages to the United States economy but many limitations also exist so economic leaders must be aware of the pros and cons when negotiating these trades. Advantages and Limitations of International Trade The advantage of a free trade agreement will lower trade barriers, increase trade volume, open different markets, provide more products for consumers, and create more investments opportunities for both countries. Consumers receive the added benefits of competition and companies gain access to new markets. As outside firms invest, this investment creates jobs and tax revenue for the host country and additional revenue for the investing firm. A free trade agreement is an efficient situation for consumers and both countries involved. However, the disadvantage to a free trade agreement is...
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...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...
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...International Trade Simulation Week 8 Eco 212 The international simulation report is a compilation of the findings and outlines that reflect advantages and limitations of international trade as a whole. After reading the international trade simulation I did find that there are four distinct points that represent the elements that make up the report. I will be reviewing each point in depth along with providing a compare and contrast of the influences and advantages. I will finally end with a discussion that brings to light the issues surrounding the international trade report and provide a summary. The economy of Rodamia relies on three main areas: agriculture, industry and services. The country is surrounded by neighbors who produce similar and different products. Uthania is specialized in making chocolate and confectionary, but also produces goods such as minerals, coals and corn. On the other hand, Suntize is a tourist attraction which is good at producing electronic goods. Lastly, Alfazia is an agrarian economy and produces goods like corn, rice and cotton. On global interaction there is an economic characteristic where a nations exchanges goods and services to others. Globally this is known as importing and exporting production. Those nations with an open economy in the world is involved such processes with other nations, but they need to make sure they have positive interactions with the nations trading with and some of the traits would be to trust...
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...International Trade ECO/212 Introduction International trade has truly expanded to encompass most of the world over the past century. The countries of the world have seen that everyone can benefit from specializing in the production of a certain good or set of goods and by having skilled workers that provide services to others. This trade off in strengths and weaknesses help get some commodities to locations that would otherwise be unable to attain goods or services that they need. The world of trading between countries is ever changing with the advancement in technology that becomes available to countries. Pros and Cons of International Trade The importing and exporting of goods across the globe is regulated by the World Trade Organization (WTO). This, like many other organizations have multiple benefits and drawbacks for the parties involved beyond practical application of rules and policies. One major benefit of the WTO is that they allow for trading on neutral ground allowing neither of the parties involved to obtain an unfair advantage during the trade agreement process. Any disputes that arise between two or more trading parties are also handled by the WTO which is also a benefit of having the organization in place. The organization itself acts as a mediator or referee of sorts when it comes to the process of trade between nations across the globe. This type of organization also has drawbacks when it comes to certain real world application in certain aspect...
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...percent GDP in services, 42 percent in industry, and 3 percent in agriculture. Alfazia is an agrarian economy and produces goods like corn, rice and cotton. Their main crops are corn, rice, cotton, fruit, vegetables, and tobacco, 39 percent agriculture, 20 percent industry (foods and textiles), and 41 percent in services. They have a low population but also have picturesque landscapes and open space. The economies of the world are becoming more integrated and countries are increasingly engaging in international trade. Rodamia is no exception, it’s most obvious trading partners in order Suntize, Alfazia, and Uthania, and With I think the most being with Suntize. Nations with strong International trading have become prosperous and are a power in the global economy. Trade can benefit all parties such as individuals, companies, and countries involved in it, as long as goods are produced with different relative costs. The gains from this are known as gains from trade International trading is an important aspect to our economy as well as other countries. This is important because trading allows countries the opportunity to receive goods and services that are not...
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...International Trade Simulation xxxxxx XECO/212 x/xx/xxxx xxxxx With international trade simulation this is showing how the international trade is able to function within all countries. With the simulation it provides a short overview of how to implement the trade restrictions within all tariffs. The most important thing is that the simulation is able to provide fundamentals about how you need to negotiate trade agreements. In the Rodamia simulation it is great that with this you’re able to see how all international trades are coordinated. In the Rodamia representative office is the place where all the major business decisions are decided and were all investment policies are born. Inside of the simulation the main guy is that Michael who is the president of Rodamia. Michael presents the image that he is a good businessman and is capable of handling international trade negotiations with other countries. Rodamis is one countries that has a GDP of 4% from there agriculture, and 30% from there poultry and other types of services. The rest of the 66% comes from many different types of services. There is an advantage of international trade. This advantage is that of gaining the cost of principles. Efficiency with comparative advantages is able to allow other countries to be efficient with inputs that they put and also there outputs will be better than if it were done alone. Many of the trade restrictions can be beneficial to countries some of these could be that of quotas, embargos...
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...International Trade Simulation and Report Team B: Kimberly Castillo, Tanya Bell, Elijah B. Gowdy, Derrick Brown ECO/212 June 6, 2012 Instructor, John Holmberg One Advantage and One Limitation of International Trade Advantage and limitation of International Trade, Countries have different quantities, qualities, and cost for resources such as land, labor, capital, and entrepreneurship (University of Phoenix, 2009). International trade is the import and export of these resources between countries. International trade allows countries to distribute their resources more efficiently. Importing and exporting of resources is vital to the economy. A gain from International trading is a price increase or decrease, in the local markets. If it is cheaper to make a good and export the good the importer will gain from trade by getting a good at a better price than what the opportunity cost of it would be. If the market price was higher, a lower price exporter will allow market price to fall and pose a benefit for consumers, in the sense that everyone gains the most with minimal losses in the short run. Four Key Points Emphasized in the Simulation Within the simulation team b has identified four key points that were underlined. First there is what is called dumping. Dumping is the selling of goods and products in other countries at a cost that is lower than the cost of those goods and products in its own country. Another key point identified in the simulation...
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...International Trade International Trade Learning Team C November 15, 2010 ECO/212 Nancy Irizarry INTERNATIONAL TRADE International trade is very important to a global economy. When countries can trade products and services that they produce with other nations without obstacles, it creates a robust economy for those exporting and importing their products and services. However, there has to be a balance between the nations to prevent protectionism, isolationism and high tariffs on imports, which can lead to trade wars. The debate over free trade and tariffs is a very complicated process as evident with the creation of the World Trade Organization (WTO). “The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters, and importers conduct their business” (WTO, 2010, p.1) Free trade has its advantages and disadvantages. The advantages and disadvantages depends on the frame of thought regarding trade. Within the simulation for international trade, one such advantage was the ability of a country to have a comparative advantage over another . When speaking in terms of a comparative advantage, its referring to a nations ability to produce a product or service at a lower price than another nation. Producing a product or service at a lower cost is the foundation of international trade. All countries who trade have the comparative...
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... and Uthania has an established agricultural and industrial economy. All are potential trade partners. This Memorandum explains the factors of economic growth for Rodamia, the production possibilities frontiers, trade agreement and policies, and recommendation for the president of Rodamia to consider in his plan to form trade partners with its surrounding neighbors. I am advising the president of Rodamia recommendations for international trade. International trade is the exchanging of goods and services with one another. Many countries have particular resources that are not obtainable in the other, to meet the desires and wants of both countries so they trade. Many advantages and limits are concerned with trading. Benefits occur for each country, but there are many additional limits put into place to manage the amount and quality of international trade. Specific issues have an effect on international trade such as foreign exchange rates and government policies. Groups such as World Trade Organization who over looks international trade along with their members, making sure that rules and agreements are followed. Many advantages to international trade and few limitations that can be encountered in this simulation. One advantage of international trade is that each country has a choice. A choice whether to impose trade barriers or to engage in free trade. One limitation of international trade is the time a country decides to impose a tariff or a quota on another country; there are...
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...are the issues involved in resolving legal disputes in international transactions? What are some practical considerations of taking legal action against a foreign business partner based in another country? What factors could work against CadMex's decision to grant sublicensing agreements? When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why. How would you compare the issues in this simulation to the domestic legal issues discussed in your Week One readings? How should companies resolve domestic and international issues differently? , 2015 william and white law group llp. (2015, June). Retrieved from http://www.whiteandwilliams.com/firm.html 2015 Liz Jones at Sydney Mitchell Solicitors Jones, L. (2015). legal action in foren countries. Retrieved from http://www.sydneymitchell.co.uk/news/legal-action-foreign-countries what is ADR. (Aug 14, 2015). Retrieved from https://www.nycourts.gov/ip/adr/What_Is_ADR.shtml The coast of business abroad comes with a different set of rules and guidelines. There are many issues in resolving legal disputes in international transactions. A company that operates in foreign countries must conciser other factors and regulations, laws , and the culture in the area that the physical location is of the country. For an example international trade law and regulations are laws laid out by congress or by...
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...advantages and limitation of international trade and identify the four key points emphasized in the simulation while looking at the absolute comparative advantages and describing the influences affecting foreign exchange rates. The team will debate issues surrounding international trade and what were the concept summary results for the assessment while evaluating the effects of government policy on economic behavior. Here is my part for the team paper (List at least one advantage and one limitation of International Trade as identified in the simulation) There are benefits, and limitations for both countries that could happen, but international trade put into place control on the quantity and quality. There are certain factors that affect international trade like government policies, and foreign exchange rates. An important aspect to economy is international trading because trading allows countries an opportunity to receive goods and services not available in their countries. If one country specialties in agriculture than trading with a country that specializes in that service will benefit. In this simulation one advantage is a variety of goods gained for each country. Another advantage is a pool of new consumer products added to the economy with consumers as potential target that manufacturer’s new markets. Another advantage is there are many international trade and few limitations. Another limitation with international trading was the quotas encountered...
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...The International Trade Concepts The International Trade Concepts simulation helps one to learn the advantages and limitations of international trade. One can also take what is learned from the simulation and relate it to the U.S. economy and the effects international trade has on it. Learning about how fiscal and monetary policies affect the exchange rate is important as well. Not only can one apply what was learned in the simulation to the U.S. economy but they can also apply it to their workplace. The Concept Summary of the simulation helps to make these applications. Advantages and Limitations International trade has advantages for every country. Other countries may produce certain goods more efficiently than another and trade allows these goods or products to be imported. This gives the consumer more choices in terms of prices and quality. This also allows the countries capital to receive new avenues for investment. Each country can then gain more wealth and use its resources more efficiently by engaging them into the production of goods which in which it will have a comparative advantage. In the simulation Rodamia may not have had an absolute advantage of either cheese or corn, but it was able to maximize benefits from trade by specializing in the production of goods in which it has a competitive advantage. International trade also has limitations for every country. Countries may decide to use others as places to “dump” products and they might also charge tariffs...
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...International Trade Simulation and Report ECO/212 April 17, 2011 University of Phoenix In our world economic system today import and export can be the heart and soul. Most all the states throughout the world export and import merchandises and goods based on their necessities. The governments exercise their studies with in-depth consideration, restrictions and limitations. In this report we will discuss the benefits and restrictions of global trade. We will also produce the evaluation of real and relative benefits and impact affecting foreign currency rates. We will also evaluate the team concept summary outcomes and focus on collected critic as the result of government policy on monetary policy. List at least one advantage and one limitation of International Trade as identified in the simulation One advantage of International Trade as identified in the simulation is opening the countries borders to international trade and investments allows for greater benefits. The greater benefits are, they can import products that are more efficiently produced in other countries. Importing of these goods allows customers to receive more choices for price and quality. At the same time, domestic producers can expand their markets to other countries, while the country’s capital gets new avenues for investments. All these factors allows for the country’s economy to become more vibrant and the country wealthier. The possibilities for growth are endless when a country’s borders are opened...
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