An important dynamic gain from international trade is that trade tends to increase the rate of growth of real GDP.

Question

Quizplus · Accepted Answer

International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to more efficient allocation of resources, increased productivity, and ultimately, higher economic growth rates. This dynamic gain from trade can result in an increase in the rate of growth of real GDP as countries are able to access a larger variety of inputs and technologies, and compete in larger markets.

An Important Dynamic Gain from International Trade Is That Trade