International trade guarantees that countries that engage in trade all benefit by exactly the same amount. Is this statement true or false? Explain your answer.

Question

Quizplus · Accepted Answer

International trade does not guarantee that all countries involved will benefit by exactly the same amount. The benefits that each country receives from trade can vary greatly and are influenced by a number of factors. These factors include the country's level of development, the specific goods and services it exports and imports, its trade policies, its economic structure, and the terms of trade. Some countries may have a comparative advantage in producing certain goods or services, which allows them to benefit more from trade in those areas. Additionally, countries with more economic power often have the ability to negotiate more favorable trade terms. Therefore, while international trade can be mutually beneficial, the extent of these benefits is not necessarily equal for all countries involved.

International Trade Guarantees That Countries That Engage in Trade All