International trading is the process by which countries export their specialized products to other countries at the same time import specialized products from other countries into their own country. Trading internationally with other countries is advantageous because it maximizes the use of resources due to specialization of production to the products that can be most efficiently produced from limited resources.

International trading however has its limitations. There are several questions that need to be answered first when trading internationally. These questions include which country to trade with

International trading based on this simulation is governed by the principle of comparative advantage. Imports and exports are based on the comparative advantage of different countries in producing efficiently different commodities which can be for export and by importing other commodities in favor of maximizing resources available to them.

Another limitation of international trading is the question of whether to impose trade tariffs or trade quotas to imported commodities from other countries. In the simulation, Suntize is dumping their watches to Rodamia which in turn affects Rodamia’s own domestic production and price of watches. Because of too much production of watches from Suntize, Suntize can give the watches at much lower prices than the domestic price of watches in Rodamia. This will harm the watch producers of Rodamia. This can be corrected either by placing a tax or duty on the imported watches in order to increase the prices of imported watches to become at least equal to the prices of domestically produced watches. Adding import tax will protect the price of the domestically produced watches. Another way to correct this dumping is to set a quota on the number of watches that are allowed to be imported into Rodamia. Due to the law of supply and demand, if you limit the supply of the imported watches then the prices for these imported watches will increase which will have the same effect as that of putting taxes on impo

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