Question

Part 2

Evaluate the following statement: "Trade is like football, one team wins and the other loses."

Answer 1

This is not true

Trade adds value; as a result, both sides are better off. Trade is not a zero-sum affair, as opposed to football. Consider example below. You go trick-or-treat with your mate. Your friend loves Reese's cups, but M&Ms don't care. For comparison, you really enjoy M&Ms and really don't know for Reese's cups. If you are swapping one of your Reese's cups for one of the M&Ms packages from your mate, you 're both better off. In fact, if you weren't made better off you wouldn't bother making the trade. Trade is not like football; both sides win in commerce.