According to new trade theory,how does trade offer an opportunity for mutual gain when countries do not differ in their resource endowments or technology?

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According to new trade theory, trade offers an opportunity for mutual gain even when countries do not differ in their resource endowments or technology by increasing the variety of goods available to consumers and lowering the costs of those goods. This is because trade allows countries to specialize in the production of certain goods, increasing efficiency and productivity, and resulting in lower costs for consumers. Additionally, the increased competition from trade encourages firms to innovate and improve goods, further benefiting consumers. Therefore, trade can lead to mutual gain for countries with similar resource endowments and technology.

According to New Trade Theory,how Does Trade Offer an Opportunity