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The term gains from trade means the 1. higher prices that firms get when they sell abroad rather than in home markets. 2. benefits that
The term "gains from trade" means the
1. higher prices that firms get when they sell abroad rather than in home markets.
2. benefits that come from reallocating resources, goods, and services to better uses.
3. alliances that nations make with each other when trade occurs between them.
4. total surplus in a market.
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