International Trade Simulation Paper Essay
International Trade Simulation Paper
1.Did your selected country have more labor or capital?
The country I selected had more capital rather than labor which was the blue island.
2. Why did you select this particular country?
The reason I chose the country with more capital was because I believed that it had more to trade with. It seemed to have less of a labor force to keep happy.
3. Did your selected trading partner have more labor or capital? The country that I selected as a trading partner had more labor than I did which was the green island.
4. Why did you select this particular trading partner?
The reason I chose that particular trading partner was because I wanted a partner that was just the opposite of me. Basically meaning they had a bigger labor force. The greater the difference in the amounts of the labor capital between two countries, the bigger the potential gain could be from trade.
5. Did you increase or decrease the welfare of your country by engaging in international trade? Why? After turn one the welfare of my country decreased because my partner wasn’t happy about the trading of the cell phones. I produced more jeans and less cell phones after that turn. As a result and after taking turn two and three, I increased it and the citizens were happy. At the conclusion of the game my countries welfare leveled off to almost where I originally started from. The welfare of my partner and I’s countries were just a little below that of the expected maximized welfare. Therefore, I could have done better to reach the maximized welfare of both countries since both can benefit from trading.