|Overview: Gains From Trade|
|Definition||The net gain from trade that results from focusing on comparative advantages rather than producing all goods domestically.|
|Related Concepts||Competitive AdvantageAbsolute Advantage|
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What are Gains From Trade?
John Spacey, November 16, 2015 updated on December 31, 2017
Gains from trade is the net gain achieved by countries, organizations or individuals from trade. Trade works because it allows countries and organizations to focus on their competitive advantages. For example, if you're better at growing apples than wheat then you can gain by exporting apples and importing wheat.
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