When there are gains to be had by both countries party to an exchange, international trade is considered a ________.

Question

Quizplus · Accepted Answer

A positive-sum game is one in which all parties involved can benefit from the exchange. In international trade, both countries can benefit from exchanging goods and services, making it a positive-sum game. B is incorrect because a zero-sum game implies that there is only one winner and one loser, which is not the case in international trade. C is also incorrect as a negative-sum game implies that all parties involved will suffer losses, which is not necessarily true in international trade.

When There Are Gains to Be Had by Both Countries