Applying International Trade Concepts Paper, James Michael Smith

Essay by jmsmithx1University, Bachelor'sA+, September 2008

download word file, 5 pages 2.4

Applying International � PAGE �5�


Applying International Trade Concepts

James Michael Smith

University of Phoenix�

Applying International Trade Concepts

The acronym TEAM stands for Together Everyone Achieves More, and can visibly be seen within the concepts of international trade. Through comparative advantage, everyone truly achieves more. This paper will cover the Applying International Trade Concepts Simulation and explain the advantages and limitations of international trade, explain the effects of international trade on the US economy, go over how changes in fiscal and monetary policies affect exchange rates, list four key points from the reading assignments that were emphasized in the simulation, apply what was learnt to the workplace, summarize with the Concept Summary that was included in the simulation. The paper will then conclude recapping how comparative advantage can benefit nations and its citizens through the use of international trade.

As far back as one can go, people have bartered for things they need.

A farmer may have bartered some of his potatoes for a herd farmer's cow. Each can now have steak and potatoes. Without the practice of bartering, each would be living on only the work they were able to accomplish. The comparative advantage of such a thing allows those that trade goods to come out further ahead than if they did not. Comparative advantage is being in a better position for the production of one good as opposed to that of another good (Colander, 2004). Comparative advantage would have to be the first thing that could be brought about from the reading assignments that was emphasized in the simulation. With comparative advantage, everyone achieves more and that is one of the underlying philosophies within the Applying International Trade Concepts Simulation.

The Applying International Trade Concepts Simulation through the University of Phoenix...