Every economy can count on two things: there will always be supply and there will always be demand. For some countries, supply cannot meet economic demand and when this happens, international trade is sometimes the only option. As with anything in life, international trade has its advantages and disadvantages. One of the main advantages of international trade is that it allows countries with a surplus of supply to trade with another country that might be short of that same supply. Another advantage is that if a country lacks a particular product or service, it can import from other countries. One of the main disadvantages of international trade is the amount of surplus that countries export to other countries. For some countries, this dumping of surpluses leads to a loss in the market. In this international business simulation, I was given the role of chief business advisor to the President of Rodamia. In this position, I am responsible for developing and coordinating international trade, investment policies and leading negotiations with other countries surrounding Rodamia. Rodamia is considerably larger than its neighboring countries (Alfazia, Uthania and Suntize) and plans to trade with them to provide a more diverse and quality product to the country's population. In this article, we will discuss some of the advantages and limitations of international trade encountered in the trade simulation of "Rodamia and its Neighbors", as well as the absolute and comparative advantages and influences affecting exchange rates. Before we get into the discussion of In this exercise, we first need to understand what absolute and comparative advantage are. A comparative advantage...... middle of paper ...... ng products from other countries, all countries can benefit from a gain. Advantage can be created by many factors, including technology, efficiency, product availability and even natural resources. Over time, all factors change, leading countries to continue negotiations. In this article, we have discussed international trade simulation and the advantages or limitations of international trade. We also discussed comparative advantages and absolute advantages as well as factors influencing exchange rates. Works Cited Application of international business concepts. (2009). Retrieved July 19, 2009, from the University of Phoenix: https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMsims/economys1/international_trade/economys1_international_trade_frame.htmlMankiw, NG (2007). Principles of Economics (4th ed.). Mason, OH: Southwest Cengage Learning.