Final answer:
Through specialization and international trade, a country can access a wider variety of goods and services at reduced costs, leveraging absolute advantage and efficiencies gained from the international division of labor and economies of scale.
Step-by-step explanation:
Through specialization and international trade, a country can gain a greater variety of goods and services at a lower cost. Specialization allows a country to focus on producing goods or services for which it has an absolute advantage, meaning it can produce them using fewer resources compared to other countries. International trade benefits countries by enabling them to engage in intra-industry trade, where they can trade goods within the same industry but with different characteristics or quality levels.
The concept of gaining from trade highlights how countries can consume more than they can individually produce as a result of specialization and trade. Moreover, splitting up the value chain across different geographic locations allows production processes to be carried out where they can be done most efficiently and cost-effectively. Consequently, consumers benefit from the increased productivity and will have a larger variety of goods available at lower prices.
Additionally, international trade contributes to national wealth by allowing countries to access export markets, thereby generating income from manufacturing with high value-added profits. Economically, international agreements play a vital role in combatting domestic protectionist measures and in fostering a global marketplace with reduced trade barriers. The benefits include improved product quality and variety, competitive pricing, and an overall net gain for the nation's economy.
While international trade may introduce competition that can challenge domestic firms and potentially lead to job losses, the overall gains are significant. Workers and firms in exporting industries, consumers, and the broader economy stand to benefit from the expanded trade opportunities. Especially for low-income countries with limited internal trade, international trade opens doors to the global market that otherwise would not be available, offering substantial economic opportunities.