Which of the following is true of international trade?
A)Free international trade benefits foreign producers at the cost of domestic industry.
B)The net gain to a country from free international trade is positive.
C)The proportion of international trade in the world is on the decline.
D)Free trade is a zero-sum game;one nation gains at another's expense.

Question

Quizplus · Accepted Answer

The net gain to a country from free international trade is positive. When countries specialize in producing goods and services that they have a comparative advantage in and then trade with other countries, they can increase the overall output of goods and services, which leads to increased economic growth and higher living standards. This is known as the theory of comparative advantage, and it explains how both countries can benefit from free trade.

Which of the Following Is True of International Trade