International Trade Model - Maple Application Center
Application Center Applications International Trade Model

International Trade Model

Authors
: Bekzod Makhmudov
Engineering software solutions from Maplesoft
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This application demonstrates how international trade occures in a simple case between two countries and in one product market. The application starts with given supply and demand functions in two separate countries, country A and country B. Then it proceeds to identify domestic equilibrium prices and quantities in these two countries for a given product market. The difference between the domestic prices plays a role in determining the direction of trade flows, i.e. exports and imports. In this given application, country A imports and country B exports products as the domestic price is lower in country B than in country A. Then the application shows how equilibrium international price and international quantity (exports and imports) can be identified given specific domestic supply and demand functions of the two countries. Moreover, this application also demonstrates interactively how setting import tariff and import quota in country A can restrict international trade and how this will affect import price, quantity, and welfare of economic agents in importing country. The application is created for study purposes of international trade model by using Maple program.

Application Details

Publish Date: June 01, 2011
Created In: Maple 11
Language: English

Tags

economics

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