Trade Ruler
Now you have a good working understanding of why nations trade, the concept of advantage, and some of the benefits of global business. But, it’s one thing to talk and read about global business and another to actually engage in global trade. You don’t have the time or the resources to set up your company, apply for permits, establish trade agreements with other nations, and manufacture your goods right now, but that’s not a problem—those things have already been done for you!
The link below will take you to the Nobel Prize website, where you will play the simulation “Trade Ruler” and see how well you can leverage your advantage to increase the wealth of your island nation as Supreme Leader.
Once the game launches you will be prompted to select one of four islands to control. Choose wisely, as each of the islands is endowed with labor and capital, but they aren’t equal. Some islands offer an abundance of labor but very little capital (technology), and others are capital rich but have a very small labor force. Which island you select will determine what you can produce to capitalize on your resources.
After you have chosen your island, you will be given the opportunity to create an avatar and your name. Once you have an identity, you must choose one of the remaining three islands with whom to trade. Look carefully at what your trade partner has to offer! Once you begin production you will be able to trade cell phones and blue jeans with your partner. At any time during the simulation you can ask for “council” by selecting the button on your television set! Listen carefully to the advice of your counselors, watch the economy of your island (as measured in seashells), and adjust your production and trade transactions accordingly. You will be able to play three rounds, permitting you to improve the economic and social conditions for your citizens.
As you move through the simulation, reflect and use what you have already learned about economics, balance of trade, and balance of payments. Good luck and trade wisely!