International Trade Simulation

International Trade Simulation International Trade Simulation"International trade is the exchange of goods and services between countries." (Heakal, 2007). International trade is helpful to the economy. The trade allows countries to exchange goods in order to have an assorted supply for the residents. The trade brings in supply which creates more demand and the economy grows.The international trade simulation shows the reasons for the international trade. The purpose of the simulation is to make decisions and study the outcomes. This is a three part simulation. The first part is to decide which countries to trade with. The second part is to decide which goods will be exported or imported. Finally the decision will be made on whether or not to impose trade restrictions.Advantages and Limitations of International TradeInternational trade has both advantages and limitations. An International trade advantage is that a country's wealth potential can be maximized. Supply and demand can increase.English: comparative adva ntage in economicsThe country should then export corn and import cheese. Suntize had an advantage in producing electronic goods while Uthania had an advantage in both agriculture and electronic goods. Comparative advantages develop from many factors such as natural resources, availability and relative effectiveness of factors of production, and the state of technology. These can also change over time, which is why the organization of a country's trade could change over time. A labor-intensive country that has fertile soil and a good climate for growing would have a comparative advantage in producing agricultural goods. An underdeveloped country may not have fully utilized resources due to shortages in capital, under developed technology, and a small economy size. International Trade is able to help these countries develop changes in the division...