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'All Countries gain from trade'. What is the basis of this orthodox economics conclusion? Do you agree? Why or why not? Trade is considered an important aspect of all countries economies. It is considered by many orthodox economists that all countries gain from trade and this conclusion can be backed up with a lot of evidence. Many countries, mainly developing, lack the resources needed to be self-sufficient and are therefore reliant upon trade. Free trade subject's domestic monopolies to foreign competition therefore making prices fall to the consumer and forcing the monopoly to be more productively efficient, e.g. British Airways is subjected to competition from other countries airlines. Having an international market allows firms in small countries to achieve economies of scale and low prices e.g. the Swiss Watch Industry The theory of comparative advantage states that countries will find it mutually advantageous to trade if comparative costs of production differ....

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