International Trade Simulation and Report

In the International Trade simulation, you are the Trade Representative of a small country called Rodamia. You are introduced to international trade--the theory of comparative advantage and the impact of tariffs, quotas, and dumping on international trade (Applying International Trade Concepts, 2003). In the first segment, it is your job to evaluate what products to produce within the country and what products to import based on the Production Possibility Frontier (PPF). Due

The economic performance of a country has an impact on its currency exchange rate. A country with political and economic stability will attract foreign investors and foreign capital which will lead to an appreciation of its currency while a country with political turmoil and poor economic performance will result in a depreciation of its currency. The GDP growth rate is used as a proxy to economic performance in the regression model. The GDP growth rate measures the rate at which an economy is growing. Chowdhury and Hossain (2014) used the GDP growth rate as an independent variable to examine the determinants of exchange rate in Bangladesh. They found that the GDP growth rate has a positive relationship

International trade is based on having a comparative advantage. Countries produce products that are easier for them to produce, then

The World Trade Organization (WTO) is a plurilateral body of 159 countries dedicated to the liberalization of world trade. Countries that ascend to the WTO agree to provisions that all other members have already agreed to, including like the reduction of tariffs, non-discrimination, transparency, and reciprocity. Consensus is difficult between 159 countries, and so agreements can be hard to reach. This consensus has been especially difficult during the Doha round. Opened in 2001, talks have been stalled over disagreements between countries, chiefly over intellectual property protections. Without an agreement, the WTO is forced into a stagnant role until the negotiations are completed.

Foreign exchange rate determines the price exchange of two currencies. Changes in these rates affects the amount of goods and services import and export of a country. When a country currency is stronger, it is now exchanged for more goods than before, and once the currency is weaker, less of goods are purchased for the same amount of the currency. Financial institutions use the exchange rates changes to decide whether to buy/sell financial assets such as bonds, stocks, etc. That means, they will buy and sell foreign assets to gain profit. The value of these assets increases or decreases as the exchange rates change. If the dollar

One of the most important factors that affect and change the exchange rates is the interest rates, which are announced by the FED and the ECB.

There are many different ways of understanding the world trade organisation (WTO). It is an organisation for trade openings where the governments of different countries are giving the opportunity to negotiate trade agreements and for them to resolve trade controversy. Many countries have faced a lot of trade barriers and wanted them to be removed, so these negotiations have helped to open trade in the market. Although the organisation is not only about opening markets because in some situations the rules support maintaining trade barriers for the country’s benefit. The agreement signed by the world trading nations is a document which provides legal rules for international exchange. They are contract binding governments to keep their trade policies within an agreed limit. The goal of the WTO is to help conduct the business for producers of goods and services, exporters and importers whereas allowing the governments to meet their social and environmental objectives. The trade relations frequently include contradictory interests, so the most pleasant way to sort out these quarrels is through some unbiased procedures based on an agreed legal foundation. This is the intention behind the dispute settlement process written into the WTO agreements. (WTO | What is the WTO? - Who we are 2016)

Firstly, devaluation of the currency leads to the boost of exports. As the exporters find it easier to sell the goods, it provides them a competitive advantage when compared to other manufacturers around the world. For understanding this concept better, we take the example of INR v/s $. We assume that 1$=60INR. An exporter from India sells a product for 10$ in the US market, which fetches

The inspiration driving the WTO is to ensure that overall trade begins effectively, uninhibitedly and normally. The WTO makes and typifies the legitimate standard methodology for overall trade among part nations and in like manner offers a structure for general business. The WTO hopes to make money related peace and security on the planet through a multilateral structure considering consenting part states at present there are fairly more than 140 people that have affirmed the fundamentals of the WTO in their individual countries as well. This infers WTO rules transform into a part of a country 's private authentic structure.

The World Trade Organization is widely known as an organization that deals with free trade on an international level. Quoting from their website, “the World Trade Organization (WTO) deals with the rules of trade between nations at a global or near-global level. But there is more to it than that.” (Source 1). In general to enter into the WTO, a country must meet certain criteria that deal with liberalization of trade policy. (Source 2? More like a general). As a member of the WTO, countries must adhere by rules and regulations set. In effect this liberalization is enforced to promote trade across all countries. To understand the effect that the WTO has on an economy, one must look at the different countries that are in it. In general there

Value of Commodity and the Terms of Trade - The prices you get for your exports differing with the cost you pay for imports. Variances in item price and the terms of trade are central point that have affected the value of the Australian dollar over its past. Australia to a great extend is exporting nation and traditionally has generally disappearing exchange and in such manner waning trade rates over the decades. The currency will only rise if the prices improve.

The geographical distribution of the imports sees six European countries sharing almost 50% of the total value for both imports and exports. Those “top 6” were: Germany (15,26%), the Netherlands (13,67%), Poland (10,95%), Italy (9,31), the United Kingdom (5,83%) and France (5,60%). Interestingly, among the “top 6” is possible to find the “top 4” of the opposite trade leg. The combined share of Germany (30,95%), Italy (8,14%), France (7,44%) and the Netherlands (6,72%) accounted in 53,25% of the total value of exports. Although accordingly the geographical distribution followed a similar pattern in both imports and exports, the differences among the “top countries” were quite remarkable. If for the imports the gap between the two main partners (Germany and the Netherlands) was of only 1,59 pp, for the exports (Germany and Italy) the gap widened up to 22,81 pp.

The international trade of goods across the world accounts for approximately 60% of the world Gross Domestic Product (The World Bank, 2014). A great proportion of goods transactions occur every second. The primary question is whether international trade benefits a country as an entirety, and, if so, why would a country implement protective trade policies to restrict particular exports? To address this question, this essay aims to explore the impact of trade on various economic stakeholders, including consumers, producers, labour and government and, furthermore, will compare models and theories with reality to ascertain the true winner/ loser in the international trade market.

     The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters, and importers conduct their business. The World Trade Organization came into being in 1995. One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War. The World Trade Organization exists to ensure that trade between nations flows as smoothly, predictably and freely as possible. It provides and regulates the legal issues which governs world trade now .

Again, there are some governments that do try to attempt to influence the value of their currency by ways of intervention. The most notable offender in recent years is that of China, who has sought to keep its currency undervalued to make Chinese exports more competitive against other heavily traded Asian markets. They can do this by buying US dollar assets, which increases the value of the US dollar to Chinese Yuan ratio. (Factors Which Influence the Exchange Rate) Because the current financial status is so heavily dependent on exporting, the continuous management of the exchange rate to ensure export competitiveness is essential for China and Sri Lanka. A reduction in exports could affect the economy seriously as a decline in exports could affect economic growth, employment and incomes. (Sanderatne)