When the Classroom Mimics Reality: A Simulation in International Trade and Relations

14 Pages Posted: 15 Sep 2003  

Brian J. Peterson

Manchester College - Department of Economics

Suzanne Wallace

Central College - Department of Economics, Accounting & Business Management

Date Written: May 25, 2003

Abstract

Students participate in an international trade simulation in which they are "born" into a country and must produce and sell goods to survive. Countries, ranging in economic power from the United States and Japan to Ethiopia and Somalia, are endowed with a level of raw materials commensurate with their national income, and must produce at a level sufficient to maintain both their population and environmental quality. As a result of this interaction, students discover that there is a reason why poor nations remain poor, and why international relations are so
problematic. Students also see firsthand the economic effects of the production process, such as the declining use of labor and increased use of capital in producing a country's output.

JEL Classification: A2, F0

Suggested Citation

Peterson, Brian J. and Wallace, Suzanne, When the Classroom Mimics Reality: A Simulation in International Trade and Relations (May 25, 2003). Available at SSRN: https://ssrn.com/abstract=414606

Brian J. Peterson (Contact Author)

Manchester College - Department of Economics ( email )

North Manchester, IN 46962
United States
260-982-5205 (Phone)
260-982-5043 (Fax)

Suzanne Wallace

Central College - Department of Economics, Accounting & Business Management ( email )

Pella, IA 50219
United States
641-628-5318 (Phone)
641-628-5375 (Fax)

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