The Myth That Says Trade is a Zero-sum Activity

International Trade
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Institutional Affiliation
International Trade
The first myth holds that trade is a zero-sum activity; if one trading party gains, the other must lose (Gwartney et al. 2000). My opinion is that states have different capacities to produce various goods depending on the availability of raw materials, the required expertise, capital, climate, among other factors. The countries take advantage of their ability to produce and deliver lots of goods to the market which they sell at an expensive price. Other states that cannot manufacture such goods do not have an option but to buy the highly priced products which fetches the manufacturers a good profit.
On the other hand, these manufacturers rely on other nations for goods and services they cannot produce locally. Likewise, they have to pay highly for them. Therefore, the high profits generated from exports is used to import the locally unavailable goods and services which leaves all the parties involved in international trade mutually beneficial to one another. States must thus recogniz...