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Explain How There Can Be Gains from Trade Between Countries

question 209

Essay

Explain how there can be gains from trade between countries even if there is no difference in the efficiency of production between each country.


Definitions:

Free-Rider Effect

A situation in group settings where individuals benefit from the effort of others without contributing themselves, leading to potential underperformance of the group.

Crowd Behaviour

The actions and interactions of individuals when in large groups, often characterized by a shared purpose or emotion.

Cloak Of Anonymity

A situation or condition that allows individuals to hide their identity, often facilitating uninhibited behavior.

Deindividuation

A concept in social psychology that describes the loss of self-awareness in individuals when they are part of a group, leading to a decrease in personal responsibility and an increase in impulsive behaviors.

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