International Trade Simulation and Report

International Trade Simulation and Report
International trade is exchanging goods and services with each other. Some countries have certain resources that are not available in the other, in order to meet the needs of both countries, they trade. There are advantages and limitations involved with trading. Benefits arise for both countries but there are also limitations that are put into place to control the quantity and quality of international trade. Certain factors also affect international trade such as foreign exchange rates and government policies. Organizations such as the World Trade Organization (WTO) overseas international trade among its members, ensures that rules and agreements are followed.
List One Advantage and One Limitation of International Trade as Identified in the Simulation
There are many advantages to international trade and few limitations. A couple of the advantages are a new pool of consumer products to your economy and new markets that manufacturers can target as potential consumers. The last advantages to international trade that can be beneficial are new areas of investment. Creating these jobs would have a huge impact on our economy but more directly the immediate economy the company is based in. Overall it would expand our tax base and benefit the whole system. The limitations come more on the importing side of things. There is no economy that wants to import more than they export creating a deficit. So a country will want to impose tariffs and import quotas to make sure that the domestic producers do not lose their market share at home. If they do that at least their small loss at home is outweighed by the gains received on the export side of things. These limitations are very important to the overall health of any economy whether it is and established strong economy or a young new and hopeful economy.

Describe the Influences Affecting Foreign Exchange Rates
There are many factors that can affect foreign exchange rates....