residents want to consume, while for other goods there is not enough
domestic production to meet residents’ demand. International trade is
necessary to achieve the gains that international specialization makes
possible.
With international trade, each country is able to concentrate on producing goods and services
that it produces efficiently while trading to obtain goods and services that other countries
produce more efficiently.Specialization and trade go hand in hand because there is no incentive to
achieve the gains from specialization without being able to trade the
goods produced for goods desired. Economists use the term gains from
trade to embrace the results of both.