 List at least one advantage and one limitation of international trade you encountered in the simulation.
 Define absolute and comparative advantage in your own words.
 Explain how absolute and comparative advantages were used in your simulation.
 Describe the influences affecting foreign exchange rates.

The Trade Representative Office of Rodamia
Michael Jacobs -President of Rodamia – chief advisor negotiator and spokesperson
Lisa Drake – Chairman
Walter Barnes – deputy Trade Rep – responsible for trade negotiations w/ neighbor countries/ regulating trade
Countries
Rodamia – population & economic development GDP – 4% agriculture (corn, wheat, cotton, dairy & poltry), 30% industry, 66% services
Suntize- popular tourist attraction/ beautiful beaches/ shopping. Manufactures various electronic goods – MP3’s DVD players, tablets 55% of GDP from services/ 42% from industry contributes/ 3% rom agiculture
Alfanzia – low density population/ picture land & open spaces Primary crops include – corn, rics, cotton, fruit & veggies/ tobacco GDP – 39% agriculture, 20% industry (processd foods/textiles)/ 41% services
Uthania – rich mineral & coal deposits & strong industrial sector Chocolate & confections – country forte GDP – 40% industry/ 12% agriculture (corn, soybeans, coffee, cocoa, & dair, poultry)/ 48% from services

For example in the first scenario Rodamia the best products for export were cheese and DVD players. Due certain choices along with availability of technology and resources those commodities were the best choices to produce and subsequently export. Importing corn from Uthania was another good choice because corn is produced at a lower opportunity cost which passes that savings along to Rodamia. In addition importing corn allows Rodamia to put a large amount of its resources into producing cheese. Suntize has a comparative advantage in electronics so importing watches from...
One limitation of international trade is the time a country decides to impose a tariff or a quota on another country; there are always consequences to these decisions. Sometimes the best decision is not made and then one has to deal with what comes out of it good or bad. A country can import