Answered: a. What is meant by the “gains from…

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a. What is meant by the “gains from trade”? b. Illustrate and label these gains on a figure

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 12RQ: How does comparative advantage lead to gains from trade?

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Question

a. What is meant by the “gains from trade”?
b. Illustrate and label these gains on a figure

Definition Definition Any of the various net benefits or net gains that a country or trader makes by participating in international trade.

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