Every economy can count on two things; there will always be supply and there will always be demand. For some countries, supply fails to keep up with the economy's demand and when this happens, international trade is sometimes the only option. As with anything in life, there are advantages and disadvantages to international trade. One of the biggest benefits of international trade is that it allows countries with a surplus of supply to trade with another country that may have a shortage of the same supply. Another advantage is that if a country is in short supply of a particular product or service, it can import it 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 surplus causes a loss in the market. In this international trade simulation, I was assigned the role of Chief Commercial Advisor to the President of Rodamia. In this position, I am tasked with developing and coordinating international trade, investment policies and leading negotiations with other countries surrounding Rodamia. Rodamia is considerably larger than the surrounding countries (Alfazia, Uthania and Suntize) and is considering trading 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 “Rodamia and its neighbors”, as well as the absolute and comparative advantages and influences that affect exchange rates. Before entering into the discussion of the exercise, we must first understand what the absolute and comparative advantages are. A comparative advantage... middle of paper... products from other countries, all countries can make a profit from them. Advantage can be created by many factors including technology, efficiency, product availability and even natural resources. Over time all factors change, which leads countries to further 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 and factors that influence exchange rates. Works Cited Application of international trade concepts. (2009). Retrieved July 19, 2009, from University of Phoenix: https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMsims/economics1/international_trade/economics1_international_trade_frame.htmlMankiw, N. G. (2007). Principles of Economics (4th ed.). Mason, OH: Southwest Cengage Learning.