Modelling Trade Logistics Based on Multi-Method Simulation Approach: Case-in-Point: Mongolia
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Historically, landlocked countries have been pessimistic about creating an export-oriented economy and associated development strategies. With stringent trade policies and complex border problems often cited, most of these nations remain poor, requiring so much improvement in infrastructure development. Mongolia, being a large nation without any direct access to a sea, shares its border with China and Russia. Although China and Russia are considered huge economies, Mongolia's trade exchange with either country has been very limited, resulting in low revenue generation for Mongolia. While China is the major export destination for Mongolia, with 64.5% of overall exports of products such as minerals, apparels or livestock, a large portion of the rich mineral deposits of this East Asian nation still remains unexploited (Lv & Li, 2009). Even with such abundant choices, the available transportation and logistics in Mongolia have not excelled, a major hurdle in carrying out trade with global partners. Everything from road conditions to political will has been identified as a reason for such a calamitous logistics system in the country (Pomfret, 2011).