Government of Rodamia

International Trade

This paper is concern International trade stimulation. Rodamia is a large country Ð'- the largest compared to its neighbor- in terms of area, population, and level of economic development. Four percent of the country's Gross Domestic Product (GDP) comes from agriculture, mainly corn, wheat, cotton, and dairy and poultry products. There are three countries on the border of Rodamia, which are Suntize, Uthania, and Alfazia.

Advantages and limitations of international trade

International trade creates a more diverse trade market. The exportation of low cost products and services enables every country to evaluate where their economic strengths and capitalize on them. Imposing a tariff on imports on products that traded freely is a difficult decision. To trade without restriction increases the overall welfare of all concerned. Imposing tariffs can invite retaliation from the countries on whose products you have imposed tariffs. It can adversely affect exports and neutralize any comparative advantage that your country.

Four key points

There were four key points emphasized in the stimulation. A numerical limitation on imports defined as a quota. The emphasized of debate on free trade versus trade restrictions. Tariff is the taxes on imports. Export goods are defined as a commodity conveyed from one country to another for the purpose of trade.

Applying what to my workplace

Factors that influence a specific company's sources of crude oil imports would include the characteristics of various crude oils as well as a company's economic needs. While, in general, crude oil is fungible, one crude oil can be substituted for another, many refineries are optimized by refining crude oil with specific qualities Also, depending on the global crude oil market condition at the time, the price difference between heavy and light crude oils varies, thus changing the economic dynamics for different refineries. Therefore, many factors determine the source of a company's crude oil imports.

Concept Summary

The basis for international trade is comparative advantage. Countries tend to specialize in products they have a comparative advantage in. By producing and exporting these products and importing other