International trade benefits all parties involved from "summary" of Basic Economics by Thomas Sowell
International trade benefits all parties involved because it allows each country to specialize in what they do best and trade with other countries for goods and services that they cannot produce as efficiently. This concept is based on the principle of comparative advantage, which states that countries should specialize in producing goods and services in which they have a lower opportunity cost, and trade with other countries for goods and services in which they have a higher opportunity cost. By specializing in what they do best, countries can increase their overall productivity and efficiency, leading to higher economic growth and higher standards of living for their citizens. For example, a country like Saudi Arabia, which has abundant oil reserves, can specialize in oil production and export it to countries that do not have oil reserves. In return, Saudi Arabia can import goods and services that it cannot produce as effici...
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