Final answer:
Mutual benefit from international trade is possible through comparative and absolute advantage; trade can accompany economic growth. While trade may lead to job losses in some sectors, the overall economic gains often outweigh these costs. Public policy should focus on aiding those negatively affected by trade rather than inhibiting international trade.
Step-by-step explanation:
International trade does not inherently mean that if one country benefits, its trading partner must be worse off. The principles of comparative and absolute advantage suggest that countries can mutually benefit from trade by specializing in the production of goods that they can produce more efficiently than others. The American statesman Benjamin Franklin once asserted that trade has not ruined any nation, hinting at the positive outcomes of open markets.
While it's true that there can be negative consequences for some sectors within a country due to trade, such as workers losing jobs to foreign imports, these are challenges that policymakers need to address domestically, rather than by inhibiting trade. Economies like Japan, South Korea, China, and India have shown significant growth through international trade. It's also important to note that no modern economy that has closed off from global trade has prospered.
Economists recognize that international trade can lead to both winners and losers within a country. These are legitimate public policy concerns, which should focus on mitigating the adverse effects rather than restricting trade. Measures could include retraining programs, educational initiatives, or social safety nets to help those negatively impacted by trade transitions.