With respect to international trade,a zero-sum game is one in which:
A)Only one nation can gain from trade,and it is at the expense of other nations
B)All nations can gain from trade mutually without any reduction in welfare to any nation
C)No nations gain from trade,as it is necessary for each country to sacrifice more than they gain.
D)Only the two nations engaged in trade will benefit and the other nations will lose.

Question

Quizplus · Accepted Answer

A zero-sum game implies that one nation's gains are necessarily at the expense of others. This implies a limited amount of resources or benefits to be distributed, such that gains for some must come directly from losses for others. In the case of international trade, however, trade can be mutually beneficial if it allows countries to specialize in areas where they have a comparative advantage, leading to increased productivity and efficiency overall. Therefore, option A is the correct choice as it reflects the concept of a zero-sum game in international trade.

With Respect to International Trade,a Zero-Sum Game Is One in Which