International Essay

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International Trade Simulation Rodamia is a large country with tremendous potential. It is surrounded by three countries with different industries. Suntize is a country with a well defined industrial infrastructure. Alfazia has strong productions in agriculture, 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 always consequences to these decisions. Sometimes the best decision is not made and then one has to deal with what comes out of it

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