International Trade Simulation
International Trade Simulation
Gina Caraiman
University of Phoenix
ECO 360
Kimberly Swaney
March 5, 2007 International Trade Simulation
Introduction
This simulation will provide reasons for international trade and help me determine which countries to trade with, what products to import or export. Also, help with determining when to impose trade restrictions like: tariffs and quotas, and when to negotiate trade agreements. Overall, the story in this simulation has cast me in the role of the Trade Representative of Rodamia, where my office develops and coordinates international trade and investment policies, and leads negotiations with other countries on above mentioned subjects.
I am the president's Chief Trade Advisor, negotiator and spokesperson on international trade and investment issues. The key players in this scenario are: Michael Jacobs is the president of Rodamia, Lisa Drake is the chairman for the Trade Commission of Rodamia, and Walter Barnes is the Deputy Trade Representative.
Rodamia is a large country in comparison to its neighbors, in terms of population, area and level of economic development. About four percent of Rodamia's Gross Domestic Product comes from agriculture, mainly: corn, wheat, cotton, diary and poultry products; 30% from industry and 66% from services. Rodamia is surrounded by three countries, (Alfazia, Uthania, Suntize), and is considering trading with these countries because this will lead to greater benefits. Trading will enable Rodamia to provide a more diverse price and quality of products to its consumers. Domestic producers can expand their markets to other countries and Rodamia capital gets new avenues of investments. All these aspects will add to making the economy more sparkling and the country richer.
Scenario one: The president has asked me to determine if there are opportunities for trade with Alfazia, Uthania, or Suntize. He has asked me to identify commodities or industries to which tax incentives could
Gina Caraiman
University of Phoenix
ECO 360
Kimberly Swaney
March 5, 2007 International Trade Simulation
Introduction
This simulation will provide reasons for international trade and help me determine which countries to trade with, what products to import or export. Also, help with determining when to impose trade restrictions like: tariffs and quotas, and when to negotiate trade agreements. Overall, the story in this simulation has cast me in the role of the Trade Representative of Rodamia, where my office develops and coordinates international trade and investment policies, and leads negotiations with other countries on above mentioned subjects.
I am the president's Chief Trade Advisor, negotiator and spokesperson on international trade and investment issues. The key players in this scenario are: Michael Jacobs is the president of Rodamia, Lisa Drake is the chairman for the Trade Commission of Rodamia, and Walter Barnes is the Deputy Trade Representative.
Rodamia is a large country in comparison to its neighbors, in terms of population, area and level of economic development. About four percent of Rodamia's Gross Domestic Product comes from agriculture, mainly: corn, wheat, cotton, diary and poultry products; 30% from industry and 66% from services. Rodamia is surrounded by three countries, (Alfazia, Uthania, Suntize), and is considering trading with these countries because this will lead to greater benefits. Trading will enable Rodamia to provide a more diverse price and quality of products to its consumers. Domestic producers can expand their markets to other countries and Rodamia capital gets new avenues of investments. All these aspects will add to making the economy more sparkling and the country richer.
Scenario one: The president has asked me to determine if there are opportunities for trade with Alfazia, Uthania, or Suntize. He has asked me to identify commodities or industries to which tax incentives could
References: Colander, D. C. (2004). Economics for business. New York City: McGraw Hill