International Trade Game Simulation

Four players are required for this simulation. Each will represent one of the four fictional countries involved – Amerikas, Brazilia, Chinland, and Sadi Arabica. There are four resources – consumer products, energy, food, and medical supplies – common to the nations. Each country has a cost advantage in producing one of the resources. Amerikas’ cost advantage is for medical supplies, while that for Brazilia is food. Chinland has a cost advantage for producing consumer products, whereas Sadi Arabica’s is for energy production. The aim of every player is to maximise his country’s utility, which is determined by the consumption levels of the four resources. The countries could choose to either produce the resources at cost or if not, trade with the others. The nation which accumulates the highest utility score at the end will be the victor. This case is intended for use in an introductory economics course. Students should be able to achieve the following learning objectives: appreciate the meaning of the economic concepts of comparative advantage, opportunity cost, and specialisation when put to practice in global trading; apply these concepts when making decisions on how much to produce of each resource, and how much of the resource to trade away at what price; and strategise accordingly when encountering a shock event. Inspection copies and teaching notes are available for university faculty. To receive an inspection copy and teaching note, please email ccxshop@smu.edu.sg with your registered faculty email ID and a link to your contact information on the faculty directory at your university as verification. An inspection copy and teaching note will then be sent to your faculty email account. Download information SMU Faculty/Staff can download the case & teaching note on iNet with your SMU login ID & Password via the following links: · The Case (SMU-26-0002) · Teaching Note (SMU-26-0002TN) For purchase of the case and supplementary materials via The Case Centre, please access the following links: · The Case (SMU-26-0002) · Teaching Note (SMU-26-0002) For purchase of the case and supplementary materials via Harvard Business Publishing, please access the following links: · The Case (SMU-26-0002) · Teaching Note (SMU-26-0002)