Scope and System Dynamic Modeling Essay Example | Topics and Well Written Essays - 2750 words

Scope and System Dynamic Modeling - Essay Example From this discussion it is clear that the model will be unable to tell the whole story behind the topic. Therefore, only impacts of interest are selected and included in the model. With the green house effect rising to alarming levels over the past decade, it seems worhtwhile to investigate the relationship between CO2 emission and global manufacturing in the current model. In addition, monetary relations between the multinationals and the host country which include taxation, contribution to Gross Domestic Product from global manufacturing and gross profit of the multinationals are likewise include in the model. Change in living standard and creation of employment from global manufacturing are also integrated into the model for better understanding between these global multinationals and the host country. This paper outlines that the Vensim software is used to simulate a system dynamics model of the situation being studied. Running "what if" simulations to test certain policies on such a model can greatly aid in understanding how the system changes over time. In the brainstorming phase, a ‘perfect’ model is the primary goal. Such a ‘prefect’ model will require the inclusion of every possible component with respect to the topic of interest. As a prerequisite, a causal loop diagram must be drafted before constructing the system dynamic model. A causal loop diagram is a diagram that aids in visualizing how interrelated variables affect one another. The diagram consists of a set of nodes representing the variables connected together. The relationships between these variables, represented by arrows, can be labelled as either positive or negative. The following is the first draft of the causal loop diagram.