How does free trade create wealth even when no new products are made?
Answer (1)
Free trade allows people to exchange items they don’t value much for things they do. Even without producing new goods, everyone ends up happier. For example, if you have a tumbler and your classmate has a notebook, and you both trade because you need what the other has, both of you gain. On a bigger scale, when the Philippines trades bananas with Japan for gadgets, both countries benefit even if no new goods are added. That’s how wealth increases through trade.
