The Advantages and Limitations of International Trade
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What are the advantages and limitations of International Trade identified in the simulation? List four key points from the reading assignments that were emphasized in this simulation. How can you apply what you learned from the simulation to your workplace? What were the Concept Summary results for the assessment?
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This posting evaluates international trade in 833 words with 2 references.
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What are the advantages and limitations of International Trade identified in the simulation? List four key points from the reading assignments that were emphasized in this simulation. How can you apply what you learned from the simulation to your workplace? What were the Concept Summary results for the assessment?
While international trade has been present throughout much of history, its economic, social, and political importance have been on the rise in recent centuries, mainly because of industrialization, advanced transportation, globalization, multinational corporations, and outsourcing. One of the benefits of the international trade is specialization. Specialization allows nations to devote their scarce resources to the production of the particular goods and services for which that nation has a comparative advantage. The benefits of specialization, coupled with economies of scale, increase the global production possibility frontier. An increase in the global production possibility frontier indicates that the absolute quantity of goods and services produced is highest under free trade. Not only are the absolute quantity of goods and services higher, but the particular combination of goods and services actually produced will yield the highest possible utility to global consumers.
Free trade policies are often associated with general laissez faire economic policies, which can allow for faster growth. ...
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