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I think many economists would argue that both countries are winning in this exchange. Many would argue that such a transaction would be an example of a “positiv
by ViktorRay 2y ago
I think many economists would argue that both countries are winning in this exchange. Many would argue that such a transaction would be an example of a “positive sum game” where each side gains more than they lose.
- TZubiri 2y agoOh yeah that trade can be positive sum is a given. And that most trade is generally positive sum is also a quite reasonable take that we seem to share. That said, even if a trade is positive for both parties, the surplus/profit of a trade might not be (and mathematically almost never is) 50/50. In the example outlined 1B wheat for 1 computer chip might be positive for both countries, but everyone would agree that the exporter of 1 chip is getting the better end of the positive sum trade.