How does trade raise the economic well-being of a nation

Question

Quizplus · Accepted Answer

Trade can raise the economic well-being of a nation by allowing countries to specialize in producing goods and services in which they have a comparative advantage. This leads to increased efficiency and lower costs, which can translate into gains for both the producers and consumers. However, trade can also lead to some individuals or sectors losing out, which is why it is important for governments to address the distributional effects of trade policies. Overall, the gains of the winners exceed the losses of the losers in most cases.

How Does Trade Raise the Economic Well-Being of a Nation