By comparing the opportunity costs the things that must be given up in order to participate in an action, a country can determine which goods and services it has a comparative advantage of production, or the ability to produce a good or service at a lower opportunity cost than another producer. Using this concept of comparative advanta...
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...r prices for a product, so if China does not sell a product for a lower price than another country, then consumers will buy the good from the other country as it offers the lowest price. Trade increases the variety of goods and services available to consumers as it’s possible to import goods without directing using resources to make them as the nation will likely not have a comparative advantage in these goods, so we will be forced to produce a good that has a high opportunity cost. Free trade allows the free-flow of technologies and ideas around the world, so the quality of life of citizens should rise, and the increase is not just in countries China but in the United States as well. Trade is not perfect, but the economic gain of trade and other gains mentioned in this paragraph that is caused by trade exceeds the costs of trade makes international trade beneficial.
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