International Trade Choice of Rodimia

International Trade Simulation
“I have done a review of the Trade Report and it is my strongly advised opinion to open trade to our neighboring countries. After review of all the information I have learned that trade with other countries will increase wealth for Rodamia. We will be importing products from other countries that can make them more efficiently and offer Rodamia more in terms of quantity and price.   These actions will also make the economy more vibrant. The limitations are minimal only because we are trading with only our closest neighbors. International Trade can be done all over the world. Eventually, broadening our import and export to other countries will be even more beneficial for Rodamia.” Romadia’s Trade Advisor.

The simulation identified Rodamia’s bordering countries provide an opportunity for international trade and investments that could greatly benefit Rodamia. International trade with other countries would give consumers more choices in price and quality of goods. The domestic producers would increase production to meet market demands in other countries, producing more capital for investing in new avenues. The interaction of trade between the countries will make the countries more vibrant and wealthier.

The main advantage to international trade is gains to all the countries involved when the right countries are exporting the most beneficial product and importing the right product from the right country. A country that is equipped to handle a certain product will succeed in doing so much like Rodamia and its domestic production of cheese and DVD players. From the choices the Rodamia had, these were the optimum products to produce themselves and export to neighboring countries. Rodamia still needed corn and watches so it decided to import corn from Uthania and watches from Suntize. This was in line with opportunity cost of production for each country and proved to be the best decision. The opportunity costs of producing goods were...