In the text, U.S. and Mexico trade corn and oil and both end up with more corn and oil. Economists refer to this increased global output as

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Gains from trade refer to the increased output and efficiency that countries experience by specializing in the production of goods and services in which they have a comparative advantage and then trading with each other. In this scenario, both the U.S. and Mexico end up with more corn and oil through trade, illustrating the concept of gains from trade.

In the Text, U