Free trade is known as a positive-sum game because both parties to a transaction can receive positive gains.

Question

Quizplus · Accepted Answer

Free trade allows for specialization, economies of scale, and access to a wider market. These benefits can lead to increased productivity, lower prices, and higher profits for both countries involved in the trade. Therefore, both parties can gain from the transaction, making it a positive-sum game.

Free Trade Is Known as a Positive-Sum Game Because Both