I.C. Simulator

This activity corresponds to the topic of International Trade, in which you can explore how international trade works through a simulator that will help you understand it in an easy and fun way.

Move the sliders to create a possible negotiation and observe the consequences. Learn key concepts and test your knowledge.

Configure your export operation

Choose what Country A will produce, what Country B needs, and adjust tariffs to see how trade profitability changes.

🇧🇷Country A — Exporter

Producing country

Exported product

Production price (USD/unit)

Units to export

Exports

🇺🇸Country B — Importer

Buying country

Market price in Country B (USD/unit)

Shipping cost (USD/unit)

Trade agreement type

Country B Tariff Policy

Import Tariff (%)

15%

Consumption Tax in Country B (%)

Country A Government Subsidy (%)

Import Quota (max units)

No limit

Operation Results

Final price in Country B

—

Total net profit

—

Margin per unit

—

Tariff revenue (Country B)

—

Effective units

—

Operation status

—

Profitability vs Market Price

0% — Not viable50% — Break-even100% — Excellent

Automated Analysis

Essential concepts of international trade

Comparative Advantage

A country should specialize in producing what it has the lowest opportunity cost in, even if it is not the best producer in absolute terms. David Ricardo (1817).

Tariff

A tax applied to imported goods. It raises the price for the consumer, protects local industry, and generates income for the importing government.

Import Quota

A maximum limit on the amount of a good that can be imported. It does not generate direct tax revenue but restricts supply nonetheless.

Export Subsidy

Government support to the exporter to reduce costs. It can be considered dumping and provoke trade retaliation.

Trade Balance

The difference between exports and imports. Surplus = more exports. Deficit = more imports.

FTA / Free Trade

Agreements that reduce or eliminate mutual tariffs. The USMCA (Mexico-USA-Canada) is a current example since 2020.

Effects of tariffs on market participants

Importing Government: collects tax revenue for each imported unit.

Local Producer (Country B): benefits because the imported good is more expensive and has less competition.

Consumer (Country B): pays a higher price for the product. Loses purchasing power.

Exporter (Country A): may see reduced competitiveness if the tariff raises the final price too much.

Assess your understanding

Answer based on what you have learned. Test your economic reasoning.

International Commerce Simulator