If trade benefits one country, its trading partner must be worse off due to trade.

Question

Quizplus · Accepted Answer

Trade can be mutually beneficial for both countries as they can specialize in producing goods and services that they have a comparative advantage in and trade with each other. This can lead to increased efficiency, productivity, and economic growth for both countries. However, there may be winners and losers within each country due to trade.

If Trade Benefits One Country, Its Trading Partner Must Be