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THE PRINCIPLE OF THE POSITIVE SUM GAME

5 November, 2015 - 11:13

The Principle of the Positive Sum Game explains why international trade is a "win-win" situation from which all parties obtain substantial benefits. The reason is that international trade by definition brings a commodity to a country at a price lower than the domestic price. In addition, international trade allows more efficient use to be made of all factors of production, such as people and raw materials.