Trade,whether between individuals or nations,will not take place unless

Question

Quizplus · Accepted Answer

Trade is voluntary and both parties are engaged to gain from the transaction. They exchange goods or services because they expect to be better off after the trade than before. Trade allows each participant to specialize in what they do best and benefit from the gains of comparative advantage. It is not necessary for each side to have an absolute advantage or for one participant to lose, as mutually beneficial exchange is the basis of trade.

Trade,whether Between Individuals or Nations,will Not Take Place Unless