Gains from trade arise from differences in

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Gains from trade arise from comparative advantage, which means that each country specializes in producing the goods and services it can produce most efficiently and then trades with other countries for goods and services they can produce more efficiently. This results in a higher level of productivity and consumption for all countries involved in the trade. Self-sufficiency, absolute advantage, involuntary exchange, and protectionism do not contribute to gains from trade.

Gains from Trade Arise from Differences in