Argonia and Selenia have specialized in the production of industrial equipment and pharmaceuticals respectively.Argonia exports industrial equipment to Selenia,which in turn exports chemicals and medicines to Argonia.This mutually beneficial trade relationship best illustrates _____.

Question

Quizplus · Accepted Answer

The trade relationship between Argonia and Selenia is an example of a positive-sum game, where both countries benefit from trade. Argonia benefits from the chemicals and medicines it receives from Selenia, while Selenia benefits from the industrial equipment it receives from Argonia. This trade relationship is mutually beneficial and illustrates the gains from trade. The other options, such as trade barriers, mercantilism, and zero-sum game, do not accurately describe the scenario presented in the question.

Argonia and Selenia Have Specialized in the Production of Industrial