Question

Trade creates wealth out-of-thin-air by rearranging the pattern of goods and services to a more valuable pattern. Commit this phase to memory as we will use this concept frequently in understand how the world works! Trade is what we call a positive-sum game, as opposed to a zero-sum game. (Poker is an example of a zero-sum game, where winners must be offset by losers.) Traders enter into an exchange with the expectation of some gains-from-trade; expect to be made better-off because of the trade. This is the essence of capitalism, a system of markets facilitating such trade. Think about it...then submit an example based on your personal experience

Answer 1

* Let me give my own example. I wanted to book a hotel during my stay at a beach. I was going through a website and thought that I should get some discount. I got an hotel nearby with some discount I booked it. I was happy. Now when I place myself as a hotel owner then he must also be happy. He could have been ready to give more discount had I bargained harder but I had thought this much is enough. Hence we both were happy.

*This shows advantages of trade.

* WTO is World trade organization. Established in 1995. This ensures that there is free trade without any undue protectionist policies. They also have dispute mechanism also. In todays world when protectionist policies are so popular its role is more important to make world better through economic prosperity which comes through trade.

**Thank you**