Applying International Trade Concepts
Essay Preview: Applying International Trade Concepts
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There are many benefits of international trade, and this simulation lays them out quite well. As mentioned in the beginning of the simulation, each country, or area of the world has their own unique and varying resources. These resources can be the people and their skills, such as strong laborers, skilled seamstresss, rug and basket weavers, and so many other talents of people around the world. Other resources are more along the lines of natural resources such as minerals, oils, precious stones, soil for growing certain foods, and even the climate of the area which can mean that they are able to grow certain foods. Many of us would never be able to enjoy the wonderful choices we have grown accustomed to in our food, home dйcor, vehicles, and other various commodities if international trade was not in practice. Trade gives us a variety of choices in the quality and price of our purchases.
Other benefits, and in my opinion the most important benefits, are those that are given to smaller and less fortunate countries. People are able to make their living by putting their skills to work for them and selling their products and creations to people who would never otherwise have the opportunity to even see such work. The fact that there are people all over the world who are willing and eager to purchase handmade rugs, jewelry, etc. means that many people are able to eat and have shelter. There are also people who are able to obtain jobs in factories and quarries in order to produce and manufacture many of the products we use everyday.
Trade and comparative advantage is one of the main points that was included in the reading and was also covered in the simulation. The cheese, corn, watches, and DVD players from the simulation all had a place where there was an advantage for trade in one area or the other due to natural or learned advantages. All countries, as I mentioned before, seem to have some type advantage at their disposal, and it is beneficial for everyone when the governments realize their advantages and use them to help get things into their country that they may not have access to otherwise as well as to bring money into their own economy by selling or trading.
The benefits of trade are another point covered in both the reading and the simulation. The main points here are the ones that I covered already in the introduction.
The role of the various