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The Advantages and Limitation of International Trade

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INTRODUCTION

The team will be discussing the 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 in the simulation. By putting restrictions on how much is imported causing the raises in price benefiting only one country.

The country that produces goods at a lower cost per unit than another country has what is called absolute advantage while comparative advantage is a country that produces goods at lower cost than its

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