Chapter 18, Problem 9AA

To determine

To describe: International trade is beneficial for United States.

Explanation of Solution

Gain from international trade can be understood as international trade provides the U.S with trade support through getting the goods & services in which they hold higher opportunity cost of production which does not provide them with any comparative advantage.

Trade supports the consumers of the country with low price goods & services which helps them in spending the saved money for other necessary expenditures. Workers are helped in gaining job opportunities when such money is spent on different other sectors like construction, entertainment, etc. So, international trade not only helps the U.S for the economic upliftment but also the other countries so that the world economy can be developed.