(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

The International Trade Simulation

            Countries trade with each other because of the simple reason that countries have different types and number of resources and that the costs of using these resources also vary from country to country. These resources are land, labor, capital and entrepreneurship. As each country tries to generate wealth by optimizing their available resources, each country will concentrate on and specialize in the products that they can efficiently produce from their available resources. Countries then would generate wealth by exporting and trading the surplus of these specialized products with other specialized products from different countries. .
             International trading is the process by which countries export their specialized products to other countries at the same time import specialized products from other countries into their own country. Trading internationally with other countries is advantageous because it maximizes the use of resources due to specialization of production to the products that can be most efficiently produced from limited resources. .
             International trading however has its limitations. There are several questions that need to be answered first when trading internationally. These questions include which country to trade with, what products are to be exported and what products are to be imported, when are trade tariffs and quotas imposed, and when to enter into trade agreements with other countries.
             The question of what products are to be exported and/or imported can be answered by studying the Production Possibility Frontier (PPF) and determining opportunity costs and comparative advantages in production. The Production Possibility Frontier is a graph that shows the maximum combination of outputs from a given number of inputs. This means that if you have limited amount of resources and you want to have two product outputs, then the PPF will show you the maximum combination of these two products.


Essays Related to The International Trade Simulation

1. Welcoming Globalization

The increased movement of money, people, products and ideas around the world which affects people across the globe (United Nations Association of the United State OF America: Globalization mini-simulation: background information). Today, globalization leads to acquiring a lot of technology through the trade in developing countries. ... As Dahlman states in "Technology, globalization, and international competitiveness: Challenges for developing countries": in Republic of Korea, it acquired a lot of its technology through the trade, copying, reverse engineering and technology licensing...

  • Word Count: 675
  • Approx Pages: 3
  • Grade Level: Undergraduate

2. Ford Motor Company

Although Ford Motor Company has been an international company for almost its entire history, the 1960's were especially significant because leaders anticipated a reduced trade barrier. The company established its North American Automotive Operations in 1971, which consolidated United States, Canadian, and Mexican operations more than 20 years before the North American Free Trade Agreement (NAFTA). ...

  • Word Count: 3550
  • Approx Pages: 14
  • Grade Level: Undergraduate

3. DDB Worldwide Service Company

Outline: I. History II. General View III. Mission Statement A. Creative Pioneer B. Leader in The New Age C. Better Ideas and Better Results D. Trusting Relationships E. Integrity, Diversity and Respect F. Unquenchable IV. Structure V. Process VI. Compensation VII. Creative...

  • Word Count: 2297
  • Approx Pages: 9
  • Grade Level: High School

4. Whats Being Done To Service

They in turn, can trade them in for cash, travel benefits or prizes. ... The basic approach that Southwest uses was developed by Pittsburgh, Pennsylvania-based Development Dimensions International Inc. ... Expand interview with observations from behavioral simulations Southwest can afford the luxury of such programs because they dedicate 15% of their annual budget to ensure success. ...

  • Word Count: 2974
  • Approx Pages: 12
  • Has Bibliography
  • Grade Level: High School

Got a writing question? Ask our professional writer!
Submit My Question