3 years ago

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

1 answer:

3 0

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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