When people in Brazil engage in trade with people in Germany, the citizens of each nation are made worse off.

Question

Quizplus · Accepted Answer

Trade between Brazil and Germany can lead to mutual benefit, where both countries can specialize in producing goods and services they are most efficient at and exchange them for goods and services they need from the other country, resulting in a net gain in welfare for both nations.

When People in Brazil Engage in Trade with People in Germany