Applying International Trade Concepts

Essay by miasmamaCollege, UndergraduateA, July 2008

download word file, 4 pages 4.5

During the years of 1986 and 2001, total export grew to over $731 billion for the U.S. In 2001, Middle East countries exported fuel worth over $23 billion. In the year 2002, highest commodities imported to the U.S. were new and used vehicles, crude fossil fuel, and various vegetables and meat products. Trade is important to all countries worldwide. Different countries offer different quantities, qualities, and cost resources. Countries look to optimize their own assets and capitol by using these types of resources as effectively as possible. The government of Rodamia is a sizable country compared to its neighbors. Four percent of its GDP comes from agriculture; mainly wheat, corn, cotton and dairy and poultry products, 30 % comes from industry and 66 % comes from services.

The significance of international trade to a countries economy varies with the export, the value of goods and services sold abroad and imports, the value of goods and services purchased abroad.

In the simulation for week five items looked at were imports and exports for the country of Rodamia.

Advantages and LimitationsRodamia is looking to better the local economy for the country. Rodamia wants to import goods that are produced more efficiently in other countries and export good made or grown locally to other countries to expand the market and obtain new avenues of revenue. In expanding the market of Rodamia with international trade, Rodamia would like to maximize profits and the impact of costs with importing goods and services. The advantages of doing so would to be to assure minimum acceptable levels of public services in regions throughout the country, and enhance mobility that an integrated market needs.

Some limitations on spending will also affect international trade. General taxation is affected by health, education, welfare training for new jobs and regional development.