Disadvantages of free international trade.

As with anything in life, there are advantages and disadvantages to international trade.

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Write a 1,050- to 1,250-word report advising the President of Rodamia making recommendations for international trade. Address the following:
• 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.
• As with all academic papers, be sure to include your references in your paper.

International trade occurs because no single country has the resources to produce everything well.

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2. Literature Review The choices available to the MNEs in financing international trade include cash in advance, letter of credit, documentary collection and open account terms (Shenkar and Luo, 2008, pp....

This is because international trade involves all the people around the world.

The theory of international trade relied on comparative advantage; the well-known feature that advantages countries took a part in the commercial trade.

Such an international organization is the World Trade Organization (WTO).


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Clearly, the transfer of industries and jobs from high to lower cost areas within and among nations has led to new policy dilemmas that have been hotly debated among experts and politicians. As witnessed in U.S. presidential politics, the debate has particularly focused on internationalism versus protectionism in trade. However, issues of efficiency versus equity, national security versus. economic freedom, and development versus social and environmental health are also at stake in the debate. Since world trade has become increasingly dependent upon information flows and copyright issues, the new economic policy dilemmas involve issues such as transborder news and data flows versus national information sovereignty, industrial espionage and piracy versus the rights of industrial patent and copyright holders (Branscomb 1994), global advertising and consumerism versus national saving and investment needs.

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