Explain why international trade is not a zero-sum game.

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06-12-2021
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Explain why international trade is not a zero-sum game.

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Анонимidn Анонимidn · Answer 1 · 2021-12-06T09:02:41-05:00

Анонимidn Анонимidn

06-12-2021

Answer:

Mercantilism regards International trade as a zero-sum game, a country can only make a profit while exporting, not importing, and it loses profit in its imports. Adam Smith proved that it is incorrect; International trade is a positive-sum game, both countries can benefit from each other, and neither of them loses.

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