Exam Content Promoting international trade is not a zero-sum game. It is a win-win proposition; both parties gain from trade. Consider the following: Tariffs are paid by the citizens of the country...

Trade and win-win situation:
There is an old school of goodness that Adam Smith mentioned, dating back to when he wrote "The Wealth of Nations" in 1776, called mercantilism, which treats trade as a total game zero: a country can gain by exporting but loss when it matters and what Adam Smith has shown is that this is inco
ect, that trading is a positive sum game. Both countries can benefit from both exports and imports.
Imports are beneficial to the economy because they benefit consumers by lowering prices and increasing variety. They offer businesses with essential inputs for their production processes and allow more specialized inputs to contribute to their productivity. So Adam Smith has altered his mind about countries being able to specialize in some of the items they would export. And with those exports, they will be able to afford imports in which other nations would specialize.
It's essentially simply an extension of our daily life. We don't sew our own clothing or cultivate our own food. Farmers and other industrialists help us specialize in various occupations. Then we concentrate in one area and spend our earnings on a variety of products for personal enjoyment. This specialty is advantageous to us. Countries might specialize in specific activities and export surpluses. So, for example, we have winter vegetables in the United States right now because we are in nations in the Southern Hemisphere, or occasionally in Mexico, to supply us with
occoli, asparagus, and grapes. It's not from a previous generation.
There is specialization in climate, time zones, and, geography which has greatly enhanced the planet. One of the finest examples is that countries that intentionally cut off trade have suffered, not just in terms of wealth, but also in terms of health and education. When you make agreements, you truly affect the poor and middle class.
Trade and zero sum game:
A zero-sum game is one in which the presence of a winner implies the presence of a loser. Think football or basketball."Many individuals believe that international commerce is a zero-sum game. In other words, they see it as a sporting event with rules and victors and losers," said Wolla in a 2017 edition of Page One Economics headlined Does International Trade Work? "Does the economy produce winners and losers?" People sometimes believe that if our trading partners succeed in international commerce, the United States must suffer. According to this viewpoint, exports represent an economy's "gain," while imports reflect an economy's "loss."
Trade and industrial globalization are complicated in practice. "The costs and advantages of trade transcend beyond the actual buyer and seller of the transaction," argues Wolla in her article. When other parties are involved, it is evident that trade can produce winners and losers. Consumers who have access to a greater selection of goods and services, as well as sellers who can export their goods or services throughout the world, may benefit. A number of suppliers (and, by extension, their employees) may be losers because they are unable to compete in the global market and must innovate/adapt or face insolvency.
However, after accounting for winners and losers, economists concludes that trade gives a net benefit to society. In other words, the advantages outweigh the disadvantages. Aside from the winners mentioned above, other beneficial consequences of trade include the opportunity to access extra physical capital, which increases productivity, promotes...