International Trade Simulation Essay

International Trade Simulation

Warren Combs

XECO/212

March 25, 2012

International Trade Simulation

The world’s economy has shown, historically, that its ability to survive depends strongly on the relationships between all countries. The world’s economy of today has become so interdependent that the progress of every countries economy depends solely on its ties with other countries. When countries require markets for its goods and services and these markets are not available from nearby countries, international trade has been and continues to be the primary solution for preventing countries from being isolated; because international trade allows the sale of each countries surplus products and services. The U.S. has mutual relationships with many countries around the world by sharing our abilities to be technologically advanced and offer other services and ideas on international commerce. Citizens of each country make use of the services and products coming from local markets, but on an international level, the government plays a major role in the selling or trading of products with other countries.
      There is no doubt that the world economy benefits from international trade because it adds money to each country’s economy through exchange of goods and gives each country the ability to control its economy thru satisfaction of its citizens. However, there are advantages and disadvantages of international trade in the simulation that cause the world’s economy to fluctuate and leave certain countries astray. One of the advantages to international trade that I found for countries was the monetary gains and having the ability to keep their own markets honest causing the local producers to improve its goods for the reason citizens have more choices available to them.   The disadvantages of international trade have to deal with countries of higher power that try to take advantage of smaller countries by swindling their government into unorthodox trading...